- 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
Litecoin Price Forecast: LTC hits $130 for first time in almost three years as open interest soars
Litecoin price grazed the $130 mark on Monday, propelled by improved sentiment around privacy-focused coins after a United States (US) court reversed sanctions placed on Tornado Cash.
Bitcoin: $100K breakout or drop to $90K ahead of Microsoft’s BTC investment vote?
Bitcoin price retraces to $95,000 on Monday after recovering from last week’s pullback. MicroStrategy co-founder Michael Saylor explained a strategic approach to Bitcoin on Sunday.
Ripple surges to a six-year high just below $2.50
Ripple (XRP) price extends its gains, trading above $2.40 at the time of writing on Monday after rallying more than 60% the previous week and surging almost four times in November.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH, XRP rallies
Bitcoin consolidated on Monday following its recovery from last week's pullback. At the same time, Ethereum and Ripple extended their rallies, driven by investors reallocating capital from BTC to altcoins, signaling the potential for continued upward momentum.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.