Ethereum Price Prediction: Knife Catching 103 - Dalton's Third Rule


Share:
  • Ethereum price has fallen into the $1,600 barrier after tagging the $1,800 liquidity zone.
  • ETH price could fall once more towards $1,300 and lower due to the recent price action.
  • The uptrend scenario depends on the June 18 swing low at $881 holding as support.

Fictional character James Dalton played by the late great Patrick Swayze, is notorious for having quoted a rule of thumb prevalent in American pop culture "Be nice until it's time to not be nice". A concise explanation for mitigating human emotional responses during tought times. Dalton’s third rule can be applied when investing in challenging market conditions. The technicals can quickly change. It is best to lower your pride before the market lowers your portfolio.

Ethereum price changes the narrative

Ethereum price has recently fallen back into the previous congestion zone, which alters the short-term bullish outlook. Last week, the ETH price displayed optimistic signals as the price hovered above an ascending parallel channel.

On September 13, the bears rejected the ETH price near the $1,800 level, where breakout buyers likely placed their buy stops. The strong bearish engulfing candle came with an uptick in volume and caused a breach through the $1,600 price level as the bulls abandoned ship. 

tm.eth.9.13.22

ETH USDT

Ethereum price currently auctions at $1,589 as the bulls attempt to re-hurdle the breached 21-day simple moving average. If the indicator cannot provide support, further declines should be expected. A Fibonacci Projection tool surrounding the summer time high at $2,030 and the September 7 low at $1,419 projected into the most recent swing high, shows a one-to-one relationship at $1,289. If the bulls do not provide support near current price levels, a five-wave impulse could commence targeting the one-time Fib level before the speculative Ethereum Merge bull run occurs.=

Traders should keep their eyes on the Ethereum price for a good knife catch scenario. Traders with higher risk tolerence can consider an invalidation point at $1,250, while more conservative traders can use the June 18 swing low at $881 to avoid any smart money liquidity hunts.

In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team

 

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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

China coin narrative in play as Coinbase CEO warns of restrictive US crypto policies

China coin narrative in play as Coinbase CEO warns of restrictive US crypto policies

Brian Armstrong, CEO and co-founder of cryptocurrency platform Coinbase, shared his thoughts on restrictive US crypto policies in an opinion editorial published by Market Watch on Tuesday.

More Cryptocurrencies News

Ethereum holders pull $1 billion in ETH off exchanges hinting retail-led rally

Ethereum holders pull $1 billion in ETH off exchanges hinting retail-led rally

Ethereum holdings in exchange wallets declined by $1.04 billion between May 8 and May 31. Interestingly, while large wallet investors have shed their Ether holdings, the altcoin got redistributed to addresses with less than 1 ETH.

More Ethereum News

Dogecoin price action hints DOGE can reverse its bearish trend

Dogecoin price action hints DOGE can reverse its bearish trend

Dogecoin (DOGE) price presents a potential for trend reversal provided a certain set of conditions are met. These conditions involve overcoming key hurdles for DOGE bulls and seeing momentum indicators flip bullish on lower time frames.

More Dogecoin News

PEPE price to drop another 15% as altcoin winter is only halfway finished

PEPE price to drop another 15% as altcoin winter is only halfway finished

PEPE price is feeling the frost and cold of the altcoin winter that continues with some notable slides in price valuation in the altcoin space. After price action dropped below $0.0014700, traders must have understood that a turnaround would only occur at a high supportive level.

More PEPE News

Bitcoin: BTC delays inevitable crash to $25,000

Bitcoin: BTC delays inevitable crash to $25,000

Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.

Read full analysis

BTC

ETH

XRP