- 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
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.