Ethereum continued to retrace higher after failing to advance lower this month. The price is approaching August’s high as it maintains a bearish daily. A break above this high could bring a small shift in the trend.
The past week has been stunning for Ethereum as it increased by another 3% overnight to a high of $2,687 after trading for a month. It appeared strong weekly but has briefly lost buzz due to a rejection at this high.
Compared to Bitcoin, which is attempting to break higher after a notable recovery in the past two weeks, Ethereum is still in a downward spiral as it steadily recovers towards the previous monthly high.
That recovery looks more like a retracement move of the bearish phase that started some months back. It may soon end if the market continues to reject the previous monthly high. Such a scenario may lead to another bearishness in the near term as $2000 will be the next bears’ target
But if we consider the recent double bounce above the key $2,000 level, ETH’s trend is most likely to shift in the next few days. A push above this monthly high could trigger the shift before pulling back for support.
Even if that comes into play, Ethereum must surpass the crucial $4,100 level before considering a major shift in the market structure. A mega rally should be expected as soon as this price level flips.
ETH’s Key Level To Watch
Source: Tradingview
The gains ahead look big. Once Ethereum manages to scale through the $2,810 resistance level, the $3,080 level would be the next target. $3,234 is another important test level to watch if the price moves higher.
A pullback from the current trading level could slide the price to $2,525 and $2,400. The key lower support to watch for drops is $2,253.
Key Resistance Levels: $2,810, $3,080, $3,234
Key Support Levels: $2,525, $2,400, $2,253
- Spot Price: $2,644
- 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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