- Ethereum price in a tight range with bulls trying to break out above $3,200.
- The risk of fading to the downside is still possible.
- Expect bulls to break out of the range and target $3,391 as an upside target.
Ethereum (ETH) price action is stuck in a range between $2,695 and $3,200 for seven consecutive days. Bulls are trying to push price action further upward with the Relative Strength Index (RSI) and global market sentiment very much in their favor.
The positive global market sentiment backs Ethereum price
Ethereum price has been stuck in a range for seven consecutive days between $2,695 and $3,200. Bulls look to try and push the price to the upside as the monthly S1 support level is holding quite well. Bulls have a few reasons for an entry in long positions in ETH price action. Around $2,700, there is the purple horizontal line that holds historical support from June 15. Around that same level, the monthly S1 support level for September is floating as well. ETH price action has been very responsive to that S1 support level.
ETH price action has an additional element in its corner for a bull run, and that is the RSI, which is just below 50, making it in an oversold area. This is a queue for bulls to start buying into Ethereum price action, as the RSI will begin to shift to the upside with prices ready for a breakout. Next to that, global market sentiment favors the upside and could start an uptrend as global markets are back in a risk-on setup.
ETH/USD daily chart
Ethereum price will target $3,391 as the first point for some profit-taking with some short-term historical importance at this level. Bear in mind that this level has been chopped up quite a lot this month, so it will not be that well respected. But it could spread out profit-taking even toward $3,687.
Should the bears in ETH price action be able to push buyers out of their positions, helped by a shift in market sentiment for example, expect a run back to the lower leg of the range trade at $2,695. As the 55-day Simple Moving Average (SMA) is hovering just below there, expect sellers to face quite some headwind from this technical support that will likely limit further downside in the short-term.
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