Another price hike awaits Ethereum if this happens

ethereum coin hud background with bull stock chart 1 scaled

Over the past three weeks, Ether has risen from $1,750 to $3,200-  which accounts for an 82% spike in value. As more and more Ether continues to burn, bullish sentiment remains high for the world’s largest altcoins. A recent article even provided a roadmap towards the $3,200- mark. From here, what’s next for ETH? Is a drawdown now likely? This pattern seems to suggest otherwise.

Ethereum Daily Chart

Source: ETH/USD, TradingView

The last three days have seen ETH trade close to the $3,200 price ceiling but a breakout has not yet been initiated. If buying momentum does fizzle out, ETH could head back towards the $2,900-mark from where bulls can initiate the next upcycle.

Moreover, a fall towards this support would give rise to bullish flag from where another hike can be expected. A successful breakout would allow ETH to register a further 19%-24% surge and towards a resistance zone of $3,440-$3,600. Visible Range showed that ETH faced little resistance above $3,600 and hence, a new ATH could be in the making. To invalidate such an outcome bears must target a close below 15th June swing low of $2,640.

Reasoning

RSI has constantly flashed overbought conditions in the market over the last eight days. This warranted the need for a correction which would be healthy for ETH’s long-term movement. Meanwhile, Squeeze Momentum Indicator registered 14 rising green bars in succession.

To put this into comparison with ETH’s bull run in late-April, SMI registered 15 straight green bars after which momentum started to decline. Interestingly, that was the highest gain on SMI since the start of 2021. Upwards pressure was also choppy on MACD’s histogram even though the indicator traded above the half-line.

Conclusion

ETH’s long-term outlook was bright but prices did need to stabilize over the coming days. In case traders take-profit at $3,200 and trigger a retracement, ETH would need to maintain above $2,900 to keep its bull flag intact. A successful breakout from the pattern would allow for a spike towards $3,600, from where it was easy sailing for the bulls.

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 68,570.37
ethereum
Ethereum (ETH) $ 3,777.28
tether
Tether (USDT) $ 0.999268
bnb
BNB (BNB) $ 595.94
solana
Solana (SOL) $ 168.64
staked-ether
Lido Staked Ether (STETH) $ 3,773.14
usd-coin
USDC (USDC) $ 0.999582
xrp
XRP (XRP) $ 0.521819
dogecoin
Dogecoin (DOGE) $ 0.161133
cardano
Cardano (ADA) $ 0.449518
shiba-inu
Shiba Inu (SHIB) $ 0.000027
the-open-network
Toncoin (TON) $ 6.49
avalanche-2
Avalanche (AVAX) $ 36.62
chainlink
Chainlink (LINK) $ 18.31
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,503.35
tron
TRON (TRX) $ 0.111548
polkadot
Polkadot (DOT) $ 7.07
bitcoin-cash
Bitcoin Cash (BCH) $ 469.25
uniswap
Uniswap (UNI) $ 10.77
near
NEAR Protocol (NEAR) $ 7.46
matic-network
Polygon (MATIC) $ 0.703041
litecoin
Litecoin (LTC) $ 84.30
pepe
Pepe (PEPE) $ 0.000015
fetch-ai
Fetch.ai (FET) $ 2.26
internet-computer
Internet Computer (ICP) $ 12.22
leo-token
LEO Token (LEO) $ 5.96
dai
Dai (DAI) $ 0.999729
wrapped-eeth
Wrapped eETH (WEETH) $ 3,926.96
ethereum-classic
Ethereum Classic (ETC) $ 30.16
aptos
Aptos (APT) $ 9.23
render-token
Render (RNDR) $ 10.31
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,729.43
hedera-hashgraph
Hedera (HBAR) $ 0.101793
dogwifcoin
dogwifhat (WIF) $ 3.48
cosmos
Cosmos Hub (ATOM) $ 8.59
immutable-x
Immutable (IMX) $ 2.23
arbitrum
Arbitrum (ARB) $ 1.14
kaspa
Kaspa (KAS) $ 0.138672
mantle
Mantle (MNT) $ 0.998714
filecoin
Filecoin (FIL) $ 5.82
crypto-com-chain
Cronos (CRO) $ 0.116943
stellar
Stellar (XLM) $ 0.106358
ethena-usde
Ethena USDe (USDE) $ 0.999440
the-graph
The Graph (GRT) $ 0.308073
first-digital-usd
First Digital USD (FDUSD) $ 0.998001
blockstack
Stacks (STX) $ 1.99
arweave
Arweave (AR) $ 43.55
bittensor
Bittensor (TAO) $ 408.97
okb
OKB (OKB) $ 45.42
optimism
Optimism (OP) $ 2.49