- Ethereum price is stuck consolidating between the 200-day SMA at $3,491 and a high volume node at $3,136.
- A bounce off the $2,820 to $2,966 demand zone will likely trigger a 25% run-up to $3,701.
- A daily candlestick below the $2,820 support level will create a lower low and invalidate the bullish thesis.
Ethereum price has been on a massive run-up since March 14 but is stuck ranging in the last two weeks. A further retracement seems to be on the cards for ETH before a move to crucial levels.
Ethereum price sees a tough fight for the bulls
Ethereum price action flipped above the 200-day Simple Moving Average (SMA) at $3,490 on April 3, but this bullish move was short-lived. As a result, ETH crashed 11% as it slid toward the immediate support level, aka the high volume node at $3,136.
A retest of this barrier is crucial in triggering a run-up for ETH, but in some cases, there could be a further retracement to tag the daily demand zone, extending from $2,820 to $2,966. This move will allow buyers to scoop ETH at a discount and trigger a new rally.
In this case, the 2022 volume profile’s low volume node at $3,703 is the next target. This run-up would constitute a 25% ascent and is particularly tough due to the 200-day Simple Moving Average’s presence at $3,491. While the chances of a local top formation here are high, investors should expect a wick to the $4,000 psychological level.
ETH/USDT 1-day chart
While Ethereum price action might seem optimistic, the bullish outlook will face invalidation if ETH breaks below the $2,820 support level on a daily time frame. Such a development could see the smart contract token crash to $2,000 before reevaluating the directional bias.
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