Last week saw Ethereum through a major breakout after subjecting to a sideway trend for three months. It exploded significantly to a new multi-month high but is now looking calm after failing to break higher.
A week ago, Ethereum traded as low as $2,350 after opening bearish for the month. Interestingly, trading later became positive due to enhanced volatility that produced a sudden surge. This triggered a major price increase throughout last week and it broke out of a four-month range.
Testing $3,248.5 yesterday, the cryptocurrency failed to advance higher and paused buying. This led to a slight reduction today as it saw its first drops after a week of trading. While the slight reduction shows signs of weakness, it appeared to have encountered a minor resistance level.
It is too early to consider a pullback as ETH is still looking indecisive on the daily chart. It may advance bullish momentum if the price continues to surge. And if that happens, the bulls’ next stop would be July’s high.
Ethereum is currently sitting well above the $3,000 level. If the price drops below this key level, it may briefly lose buzz while looking for a threshold for a rebound. That could provide another buying opportunity for the long-term investors before initiating a mega bull run.
ETH’s Key Level To Watch
Source: Tradingview
The immediate resistance level for an increase is $3,396, followed by the $3,562 resistance – tested in July. If the price flips through these levels, the next target for the bulls would be May’s $3,977 high.
Considering today’s drops, the closest support for the market is $3,080. If the price falls below it, ETH may pull back to the $2,810 level for support. Lower price levels for reaccumulation are $2,600 and $2,500.
Key Resistance Levels: $3,396, $3,562, $3,977
Key Support Levels: $3,080, $2,810, $2,600
- Spot Price: $3,146
- 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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