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Ethereum Price Prediction: ETH eyes $3,500 as bears disappear

  • Ethereum price experienced a massive run-up on October 1, pushing past the $3,202 resistance level.
  • The buyers need to keep ETH above $3,202 to have any chances of heading higher. 
  • A breakdown below $3,000 will sow the seeds of doubt and potentially invalidate the bullish thesis.

Ethereum price has been traversing a bullish pattern since September 1 and broke out precisely a month later. The upthrust was impressive since it slashed through a crucial resistance level, but it needs to hold above it for a continued run-up.

Ethereum price faces a tough call

Ethereum price set up three distinctive lower highs and lower lows since September 1. Connecting these swing points using trend lines reveals the formation of descending parallel channel. After ten days of consolidation around the $3,000 psychological level, ETH broke out on September 1 as it rallied 12%, cutting through the formidable $3,200 resistance level.

If Ethereum price manages to hold above this barrier, there is a chance that a potential bounce could trigger the next leg of the uptrend.

In such a case, investors can expect ETH to make a run at the $3,619 resistance level, and the buy stop liquidity resiting above it. 

This move from Ethereum price will set a higher high, hinting at a shift in favor toward the bulls. Moreover, this newfound optimism could cause FOMO, further pushing Ether to retest the $4,000 psychological level.

ETH/USDT 12-hour chart

ETH/USDT 12-hour chart

On the other hand, if Ethereum price fails to hold above $3,202, it will indicate the short-term investors are booking profits. In this case, ETH  will head toward $3,000, where the buyers make another comeback. 

However, a failure to hold above $3,000 will invalidate the bullish thesis and knock Ethereum price to venture lower.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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