Despite struggling with volatility in the past few days, Ethereum’s price broke higher to tap the $3,700 zone today. The price is down but bigger moves lie ahead as it targets the current high while gathering liquidity.
Unlike Bitcoin, Ethereum did not slow down buying in the past week despite witnessing volatility contraction on the way up.
The contraction, which started from around $3,000, suggests a serious liquidity gathering on the daily timeframe. From the look of things, the price will likely explode massively to a new all-time high soon.
As seen on the daily chart, the price broke above a monthly resistance level last week and increased steadily to a daily high of $3,760. It saw a rejection there and dropped below $3,600, looking for a retest.
Rolling back gains could trigger a small price retracement, capable of slowing down the bullish rally. The $3,000 level is a key support to watch for such a rebound. Failure to rebound could cause more setbacks in the market before the bulls step back into action.
If July’s high provides support, ETH may continue to gather momentum until the price breaks out of the current all-time high. The price currently appeared weak following the latest drops. While the bears are showing interest, more drops can be expected if the supply level increases.
ETH’s Key Level To Watch
Pushing above the current daily high, ETH is likely to encounter minor resistance at $4,000 before reclaiming the $4,094 resistance with a major break out to $5,000
For a potential pullback, the immediate support level to consider for drops is $3,497. Below it lies the $3,255 support. If the price further dips, the next level to watch is $3,015.
Key Resistance Levels: $3,760, $4,094, $5,000
Key Support Levels: $3,497, $3,255, $3,015
- Spot Price: $3,595
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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