Why other cryptocurrencies should follow the lead of Ethereum

Ethereum (ETH) price should be an example and motivation for other cryptocurrencies to follow its lead. Not only is ETH price printing at almost 10% gains for this week, but it is also in reach of a very big psychological level that could make or break the next steps. With several other indicators in favor of a more bullish reaction, expect to see ETH price soon hitting the monthly R2 resistance level at $2,278 and making 30% overall since the end of last week.

ETH price is pumped with no room to stop just yet

Ethereum price is on a tear after the very difficult trading week it had last week, where ETH price was nearly set to end its winning streak of five consecutive gains. This week will be number six as ETH price is holding a solid profit. EHT price saw its gains accelerating on the back of euphoria in global markets that the inflation numbers in the US are finally starting to slow down. 

ETH price is in a good position to jump above $1,928, a key level just below the monthly R1 and crucial to be reclaimed by bulls. From there, a perfect entry is offered to go for that big $2,000 psychological level and right in the middle as an anchor point for the monthly R2 and the 200-day Simple Moving Average at $2,278. Should bulls be able to perform this playbook trade by the end of August, roughly 30% gains are there to write down on your account.

ETH/USD Weekly chart

Risk to the downside comes with a firm rejection against $1,928, which could see a big fade and pullback towards $1,688. With this drop back, bulls that bought in along the way will start to unload and unwillingly start to give bears more strength to dip toward $1,404. That is roughly a 20% loss as that pivotal level, together with the 55-day SMA, should be enough to catch the price action.