• Ethereum price rally is looking to tag the $3,000 resistance level after 80 days.
  • A successful flip of $3,240 might indicate the start of a new uptrend.
  • If ETH fails to hold above $3,240, a pullback to $2,640 seems likely.

Ethereum price is at a crucial point in its uptrend as it approaches an essential supply barrier. The current position of ETH is vital since it will decide if the uptrend will continue or lead to a pullback.

Ethereum price faces a tough decision

Ethereum price continues to rise, continuing its rally that started on July 20. The impressive 72% upswing shows no signs of slowing as it approaches the range high at $2,991. Breaching this barrier will allow ETH to tag the $3,000 psychological level.

Such a development will lay out two possibilities, a continuation of the uptrend or a correction that allows the buyers to recuperate before the next leg up.

For this uptrend to continue, Ethereum price needs to slice through $3,000 and produce a decisive 12-hour candlestick close above $3,240. Such a move will flip the range high into a support level, allowing ETH bulls to retrace to it and restart a new uptrend.

However, if the uptrend fails to stay above $3,000 and flip $3,240, ETH will likely retrace to $2,640, a stable support barrier. This move will allow the bulls to gather steam for a new upswing.

ETH/USDT 12-hour chart

ETH/USDT 12-hour chart

While things seem bullish for Ethereum price, the correction to $2,640 could turn fatal if the sellers shatter it. This development could push ETH down to the 50% Fibonacci retracement level at $2,345. A breakdown of the range’s mid-point will shift the favor toward bears and invalidate the bullish outlook.

In some cases, a surge in selling pressure might push ETH down to $2,271.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin is showing rising correlation with the S&P 500

Bitcoin is showing rising correlation with the S&P 500

Bitcoin and the crypto market have been in an uptrend since Wednesday following the Federal Reserve's decision to cut interest rates by 50 basis points. Bitcoin is up nearly 3% in the past 24 hours, rising briefly above the $63,000 level for the first time in three weeks.

More Bitcoin News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

More Ethereum News
Consensys case against SEC over Ethereum dismissed by Texas court

Consensys case against SEC over Ethereum dismissed by Texas court

Consensys announced dismissal of a case it filed against the SEC in April about the agency's alleged actions against Ethereum. Judge Reed O'Connor of the Northern District of Texas dismissed the case on Thursday. Consensys claims that the court failed to examine the "merits" of its claim against the SEC.

More Cryptocurrencies News
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors. 

More Ripple News
Bitcoin: On the road to $60,000

Bitcoin: On the road to $60,000

Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.

Read full analysis
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

BTC

ETH

XRP