Ethereum Price Prediction: ETH consolidates before popping 22%, but dead-cat-bounce looms


  • Ethereum price is keeping investors on edge before the promised rally.
  • ETH price consolidates with lower highs and higher lows, pointing to a possible drop to $2,278.42 before swinging back to $2,682.70.
  •  Expect to see that drop today with a double bottom strong enough to form a bullish border.

Ethereum (ETH) price is still set to rebound roughly 22% and erase the incurred losses from the past few trading days. But price action this morning during the ASIA PAC and European session is consolidating, with lower highs, and higher lows as bears and bulls are squeezed towards each other. Expect to see a pop higher with a bullish breakout either straight away after the consolidation or after a small drop and bounce off $2,278.42 with the double technical bottom in place.

ETH price underpinned by double technical floor

Ethereum price is keeping investors and bulls on edge after a full technical reversal of the incurred losses stalled in Tuesday's US trading session. Today, it looks like ETH price is under consolidation, with lower highs and higher lows pointing to bulls and bears being pushed together. Usually, this will result in a breakout trade, expected to the upside, as the Relative Strength Index (RSI) cannot get away from being oversold, which means that sellers have no decent room to the downside to make gains.

ETH price is thus on the cusp of popping higher, which could be via a breakout trade out of the consolidation that runs higher towards $2,685.70 or $2,695.79. Another scenario to keep in mind is a small drop to the downside to test the double floor, with the monthly S2 and the historic pivotal level at $2,278.42. A test and bounce off that level would see price action ramp back up towards $2,695.70, just shy of that $2,700 marker.

ETH/USD daily chart

ETH/USD daily chart

Not only Ethereum price is consolidating, but the eurodollar as well with a fourth trading day of lower highs and higher lows. Here a break to the downside would reflect more dollar strength that would weigh on Ethereum price, which is valued in dollars. ETH price would drop below $2,278.42 and submerge below $2,000 towards $1,928.89, which is the first notable level on the way down.

 


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