- Ethereum price sits on a massive demand barrier, failing to hold above, which could be fatal.
- ETH bulls could trigger a massive upswing if a higher high at $1,945 is formed.
- A decisive daily candlestick close below $1,700 could kickstart another downtrend to $1,542.
Ethereum price shows signs of reduced volatility as it hugs a demand barrier closely. This level could bring about massive gains or trigger a steep correction.
Ethereum price primed for a massive move
On the 1-day chart, Ethereum price has been trudging close to a support level at $1,744, coinciding with the 78.6% Fibonacci retracement level.
A daily candlestick close above $1,945 will create a higher high, which might be interpreted as optimistic by investors. Therefore, a spike in buying pressure here could propel Ethereum price by 30% to $2,500, a new all-time high for the smart contracts platform token.
However, investors need to pay close attention to the previous all-time high at $2,041, as it could potentially deter this upswing.
Adding credence to the bullish outlook is the confluence of support from the Fibonacci extension and the 50 one-day moving average (MA).
ETH/USDT 1-day chart
Further, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model also shows nearly 700 addresses holding about 2.45 million ETH here. Hence, any short-term selling pressure might be absorbed by investors in this area.
Ethereum IOMAP chart
Regardless of the bullish outlook, investors need to note that a stiff resistance harboring 730 “Out of the Money” addresses that hold roughly 1.71 million Ethereum is present at $1,826.
Hence, a rejection at this level leading to a solid daily candlestick close below $1,700 could trigger a 10% correction to $1,542.
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