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Ethereum Price Consolidates Below 8 Month Trend, Is $4000 Incoming?

Ethereum Price Consolidates Below 8 Month Trend, Is $4000 Incoming?

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Ethereum (ETH) price has shown immense strength after it successfully launched its “London” upgrade earlier this month. One of the advancements with this upgrade is that now ETH is burned from each transaction, essentially bringing ETH closer to a deflationary asset. At the time of writing, over 71,000 ETH has been burned since this upgrade. Investors took a bullish stance towards this & since the upgrade took place, ETH has been in a strong uptrend. As long as BTC stays steady, ETH will likely hit mid $3000s soon.

While looking at the last 10 days of trading, we can see how ETH has formed an ascending channel (potential bull flag). Bulls have been consolidating below a near 9 month trend line which was holding the price of ETH until mid June. Ethereum must regain this trend to experience a large rally.

In addition to this trend lies a major resistance zone from $3135-$3323. Bulls must barrel through these two marks for ETH to have a clear sky to its given targets. In the likely case that ETH breaks above this marks, expect price to rise to $3565 & potentially $4092.

Ethereum Price Analysis: ETH/USDT 1 Day Chart

Ever since ETH price broke over $2000 it has been supported by the 20 day MA. This MA is a good gauge to determine if price is in an uptrend or not. If at any time ETH breaks below this MA, we should expect further downfall into a potential short term bear trend.

Along with this MA lies a major support zone of $2927 which price has been holding for nearly 2 weeks. In the case bears assert more dominance & ETH price breaks below this support along with the bottom trend of its channel, expect a retracement to $2616 to occur.

While looking at the Stochastic RSI, we can see how strength just reset to the oversold territory. This is a healthy scenario as it means price is regaining strength for a potential run up. As long as the stochastic stays above the 20 value, we should expect a bullish breakout to soon occur. The relative strength index has formed a slight bull flag pattern.

A breakout of the top trend is needed for a large push in price to occur.

ETH Intraday Analysis

Spot rate: $3274
Trend: Bullish
Volatility: High
Support: $2927
Resistance: $3323

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

Domenic

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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