- 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.
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
Solana price sustains recovery rally despite falling daily active addresses
Solana price shows strong bullish momentum, which has seen the Ethereum killer break out from a descending parallel channel. Strangely, the daily active addresses on-chain metric fails to mirror this optimism, which is unorthodox considering the two parameters conventionally to go hand in hand.
ImmutableX price rallies by 40% in 24 hours, but whale activity remains weak
ImmutableX price rise astonished the market as the altcoin led the crypto market rally on Tuesday. The altcoin hit a 45-day high and, managed to flip many of the resistance levels into support floors. The reason behind the rally is unknown, but the whales seem to be active once again.
US House Committee passes bill to prevent issuance of CBDC
The United States is a landmine of regulatory trouble for the crypto space, but the technology behind it was being pursued for adoption. However, the application of this technology is also being objected to by many, attempting to end things before they even begin.
Optimism price outlook as network sells 116 million OP tokens
Optimism network has revealed plans to start selling 116 million OP tokens in a private sale immediately. At current rates, these tokens are valued at approximately $162.4 million but the transfer is not expected to impact market price.
Bitcoin: BTC contemplates crash in September
Bitcoin price remains unfazed by the US CPI announcement on September 13 and continues to move in a range. The weekly chart, however, shows a potential short-term recovery rally that could set the stage for a steep correction.