|

Ethereum Price Prediction: ETH to provide accumulation opportunity before revisiting $2,000

  • Ethereum price could experience a swift selloff on the breakdown of the 100-day EMA at $1,494. 
  • Sidelined buyers can accumulate ETH around $1,400 before the next leg propels the altcoin to $2,000.
  • A daily candlestick close below the $1,343 support level will invalidate the bullish thesis for the smart contract token.

Ethereum price action depicts exhausted bulls after an explosive move over the last five days. This upswing is currently facing a significant hurdle and is likely to retrace to stable support levels to refuel. The resulting rally could propel ETH to critical psychological levels.

Ethereum price ready for a new challenge

Ethereum price showed incredible resilience around the $1,280 support level, which led to tight consolidation and sideways movement. The breakout, however, was equally impressive as ETH surged by 25% in under five days and set up a local top at $1,594. 

While many investors were blindsided by this sudden explosion, it was an obvious move, as noted in our previous article. As we advance, ETH could pull back to the 100-day Exponential Moving Average (EMA) at $1,494 as investors book profits. 

A breakdown of this level will open the path to retesting the $1,400 support level that coincides with the 50-day EMA. Accumulating around this level would be an ideal scenario for the next leg that could propel Ethereum price to $1,784. 

Depending on the market conditions and the bullish momentum, Ethereum price could flip this hurdle and aim for the $2,000 psychological level. In total, this move would constitute a 44% gain for investors and is likely where the upside is capped for ETH.

ETHUSDT 1-day chart

ETHUSDT 1-day chart

While things are looking up for Ethereum price, the $1,400 support level is crucial and has to be defended at all costs. A breakdown of the said barrier could indicate two things - investors are unsure and are booking profits, and/or the sellers are overwhelming the buying pressure.

Either way, a daily candlestick close below the $1,343 support level will invalidate the bullish thesis for ETH. Such a development will likely trigger a further spike in selling pressure and knock Ethereum price to revisit the $1,280 foothold.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

More from Akash Girimath
Share:

Editor's Picks

Binance revokes SignalPlus API keys over potential security threat

Binance, the largest cryptocurrency exchange, announced on Thursday that it revoked the Application Programming Interface (API) keys linked to SignalPlus, a third-party institution-grade technology firm.

XRP gains ground as Ripple CEO says US crypto users aren’t going anywhere after midterms, calls for clear rules

Ripple (XRP) ticks higher on Thursday, trading near $1.32. The remittance token is up roughly 10% from last week’s trough at $1.20, suggesting that the path of least resistance is gradually flipping upward.

Top Altcoins Price Forecast: Ripple, Cardano and Solana extend post-midterms rally

Top altcoins, including Ripple (XRP), Cardano (ADA), and Solana (SOL) are trading in the green on Thursday, extending a steady recovery so far this week, driven by the post-US midterms relief.

Bitcoin claims $80,500 as short liquidations mount

Bitcoin (BTC) extends its rebound, climbing above $80,500 on Thursday after closing above the key Exponential Moving Averages (EMAs) the previous day. The rebound comes as a short squeeze triggers nearly $800 million in liquidations over the past 24 hours.

Bitcoin: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.