Ethereum Price Prediction: ETH roars back to $4,000


  • A historical technical level offers ETH buyers a good entry point.
  • Ethereum acts as a perfect buy-the-dip asset.
  • Expect further upside for the altcoin towards $4,000.

Ethereum (ETH) stayed the course of other cryptocurrencies, under pressure from Bitcoin earlier this week. But with this dip comes the opportunity for buyers to pick up Ethereum and add to the portfolio. 

Buyers scratched their heads after seeing the price action in Ethereum on September 7. Not a real clean entry point could be found for ETH as the 55-day Simple Moving Average (SMA) was too far of the fat $2,898.56 level, and buyers were reluctant to jump in at $3,018.54 in the risk that price action could continue further down in the days to come. 

The next best entry came the day after September 8, with the orange ascending trend line at $3,200. This trend line originated from August 19 and was initially part of a symmetrical triangle formation that caused the jump higher on August 30.

Extending that trend line offered Ethereum a base at $3,212.56 as an entry point after the dust settled on the negative wave in cryptocurrencies. Price action since then looks healthy and shows that buyers are regaining control and have gotten in at some excellent entry points.

Ethereum price action looks healthy for more upside

The fact that price action in Ethereum can even trade above $3,391.52 on Thursday – without a firm retest of that level – shows that buyers are eagerly still flocking in to go long and are adding Ethereum to their portfolio.

ETH/USD daily chart
ETH/USD daily chart

On the upside, the next significant level to watch and observe how price action in Ethereum will behave is $3,687.17. That was the launching point on September 3, which pushed price action to new highs for the year. So, this is a level that will need to be watched if it can act again as an ETH launching path, or if it will be used by sellers as a push to drive prices down again. 

Considerable importance will be on the red descending trend line. That trend line does not hold much importance with just one test, but with the monthly R1 resistance level below $3,835.33. That should be a level to watch that could cause temporarily limited upside for the bulls.


 

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

SafeMoon ready to bounce after 30% bearish fakeout

SafeMoon price action is nearly singular in its current behavior and structure. Very few, if any, significant altcoins have displayed the kind of price behavior SafeMoon has. SafeMoon price faced a strong sell-off during the early part of the Tuesday.

More SafeMoon news

Solana price positioned for new bull rally towards $275

Solana price has hugged the top of the Cloud as its primary support level for the past week. The respect of Senkou Span A as support has resulted in SOL moving and closing above one of the 2 Ichimoku levels necessary to confirm a new uptrend.

More Solana news

Ethereum price builds the momentum to hit new all-time highs

Ethereum price is up more than 16% for the week, reflecting a resurgence of buying pressure despite the last three weeks of uncertainty. Point and Figure Analysis indicates a bullish entry opportunity is present. The outperformance of Bitcoin is likely to be sustained.

More Ethereum news

Axie Infinity user converts Magic Internet Money to earn over $82,000 a year

A player of play-to-earn game Axie Infinity, has confirmed that the game offers higher rewards than a Goldman Sachs’ research associate’s salary. Analysts have a bullish outlook on the gaming token’s price. The play-to-earn blockchain ...

More Axie Infinity news

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

BTC

ETH

XRP