- Ethereum price is at an inflection point and could retrace if the bullish momentum falls short.
- The MRI has flashed a preemptive top signal on the 1-day chart adding credence to the bearish outlook.
- A 14% pullback to the upper barrier of the demand zone ranging from $2,150 to $1,965 seems likely.
Ethereum price has stayed afloat despite the market-wide correction. However, this upswing could come to an end according to a technical indicator.
Ethereum bulls at make-or-break point
Ethereum price has been on a tear, hitting an all-time high at $2,553 after multiple failed attempts to breach the $2,000 level successfully. Now, a minor retracement could be headed ETH’s way.
This bearishness is primarily due to the Moment Reversal Indicator’s (MRI) preemptive top signal formed on the 1-day chart. This setup contains a yellow ‘one’ candlestick, which suggests that the rally is nearing its end.
If this indicator establishes a red ‘one’ technical formation, a one-to-four candlestick correction seems likely. In such a situation, investors can expect the smart contract token to correct toward the immediate support provided the MRIs breakout line at $2,345.
However, if sellers overwhelm the buying pressure in this range, a swift pullback to the upper band of the demand zone at $2,150 seems likely.
ETH/USDT 1-day chart
The bearish outlook will face invalidation if ETH breaches its recent top at $2,553 in a convincing fashion before hitting the demand zone. If this were to happen, Ethereum price could be on the verge of another bull run.
Hence, investors can expect this pullback to be a short-term setback before the buyers take back the reigns. Therefore, a decisive close above the all-time high will trigger this uptrend toward the $3,000 level, which coincides with the 127.2% Fibonacci extension level.
This upswing might witness a consolidation around the $2,700 level, which might help more market participants accumulate Ether before riding toward a crucial psychological level.
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
Editors’ Picks
Lido DAO announces new phase on Ethereum with Simple DVT module
Lido DAO voted on the deployment of the Simple DVT module nearly six months ago, it is ready for mainnet as of April 17. Simple DVT helps to make Lido’s technology accessible to more users. LDO price is down nearly 3% in the past day.
New altcoins crash and burn, but this altcoin shows strength Premium
Binance Coin price shows a bullish pennant continuation pattern. BNB could range between the $600 to $526 levels until the skies clear out for Bitcoin. The altcoin could see a massive gain with the upcoming BEP-336 upgrade.
Cronos price fails to recover despite network upgrade
Cronos (CRO) is an Ethereum Virtual Machine (EVM) compatible chain in the Cosmos ecosystem. A mainnet upgrade was completed early on Wednesday and the asset’s price declined nearly 2% in the past 24 hours.
XRP tests $0.50 resistance after Ripple CLO says pretrial conference with SEC did not take place
XRP is stuck below $0.50 resistance after failing to close above this level since Monday. Ripple CLO Stuart Alderoty said late Tuesday there was no pretrial conference since the SEC dropped charges against executives.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.