- Ethereum price shows a tight consolidation around the $1,679 resistance level.
- Short-sellers are likely to get trapped if ETH spikes up to tag the $2,013 hurdle.
- Invalidation of the short-term bullish outlook will occur if the altcoin produces a lower below $1,512.
Ethereum price has been consolidating after the January rally subsided after three weeks. This tightening continues even after BTC shot up 3% over the weekend. Therefore, a short-term spike in buying pressure should is likely. This move could propel ETH to tag immediate hurdles, liquidating early bears.
Ethereum price in between two outlooks
Ethereum price was inflated by 35% over the first three weeks in January, but the momentum subsided, resulting in a tight consolidation for the next week. As ETH hovers below the $1,679 hurdle, market participants need to be cautious of a short-term spike in buying pressure.
There are two reasons why this would happen:
- market makers or smart money are likely to push Ethereum price higher to collect the liquidity resting above the equal highs formed at $1,679.
- The second reason is that a retest of the $2,000 psychological level would invite a lot of investors to book profits, adding more pressure to the downside.
Additionally, this spike in Ethereum price would overextend, causing the Relative Strength Index (RSI) to delve deeper into the existing bearish divergence. This technical formation occurs when the underlying asset’s market value increases in the face of declining momentum. Such a development indicates that the ascent is built on a shaky foundation and is likely to result in a trend reversal soon favoring the bears.
Therefore, early shorters should be cautious of a sudden pump in Ethereum price to tag the $2,000 psychological level.
ETH/USDT 1-day chart
While the outlook for Ethereum price is slightly bearish, a minor pump could still be underway. A premature breakdown of the $1,512 support leading to a daily candlestick close below it would create a lower low. This break in the bullish structure would invalidate the bullish spike thesis and confirm an opportunity to short ETH. In such a case, the $1,429 and $1,331 support levels are good take-profit levels.
On the other hand, if Ethereum price flips $2,000 into a support floor, it would confirm the bullish outlook and increase the possibility of an extended run-up to the next significant hurdle at $2,730.
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.
Follow us on Telegram
Stay updated of all the news
Ripple holders' profit taking hits a 19-month high as XRP price shoots up by 42%
XRP price has performed beyond expectations and has marked a multi-month high, restoring confidence in its investors. These holders have also made the most of the situation and turned to sell, which could backfire on the price action soon.
Decentraland Price Forecast: What to expect from MANA as Metaverse Fashion Week kicks off
Decentraland price (MANA) has identified critical support on day one of the Metaverse Fashion Week. The token is trading horizontally on the four-hour timeframe as bulls push to break above a descending trendline.
Ethereum devs confirm withdrawals to begin on April 12; Here's what to expect from ETH price
Ethereum is on the verge of bringing about one of the biggest upgrades to the blockchain since the Merge. The arrival of withdrawals has been anticipated for a long time now, however, it may not be as lucrative for Ethereum price as one might expect.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Market woes threaten bullish potential, XRP is undeterred
Bitcoin has reclaimed above $27,000, but increasing market volatility threatens the leg up. Ethereum faces critical resistance at $1,819 as investor sentiment suggests liquidity issues. Ripple reaches multi-month highs amid lawsuit-related optimism.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.