- Ethereum price consolidates after a 40% rally.
- ETH could rise towards $2,000 if the consolidation breaks to the upside.
- A breach of the 8-day exponential moving average could be the first sign that the uptrend is failing.
Ethereum price is showing optimistic signals post-rally. If market conditions persist, a $2,000 ETH price could be on the horizon.
Ethereum price consolidates
Ethereum price maintains its bullish stance going into the final week of January. Since the beginning of the month, the decentralized smart contract token rallied by 40%.
At the time of writing, more factors suggest the uptrend will continue as opposed to a hopeful pullback.
Ethereum price currently auctions at $1,620, as those who have taken profit have reduced the uptrend gains to 35% since January 1. Despite the profit-taking consolidation, bulls in the market seem unfazed. On the one hand, the Ethereum price maintains its support above the 8-day exponential moving average (EMA). Additionally, the largest candle within the current uptrend belongs to the bulls, established on January 14 when ETH rallied 10% from $1,450 to the $1,600 zone.
Previous outlooks have maintained a bullish bias noting key resistance levels at $1,800 and potentially $1,850 as the next probable targets. If bulls can hurdle the aforementioned resistance zones, a $2,000 ETH price could be imminent. The bullish scenario creates a potential 23% rise from Ethereum’s current market value.
ETH/USDT 1-day chart
A breach of the 8-day exponential moving average at $1,580 could be the first indication that bears have the capacity to challenge the bullish trend. For traders looking to enter the market, invalidation of the bullish thesis could be a breach below the recent swing low at $1,501 established on Wednesday, January 18. A breach of the invalidation level could create opportunity for a steeper decline targeting the $1,300 support zone. ETH would decline 21% if the bears were to succeed.
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