Ethereum Could Be on the Verge of New All-Time Highs

Key Takeaways

  • Ethereum is up more than 10% in the last 30 hours.
  • A decisive close above $3,806 could push ETH to new all-time highs.
  • Prices might test resistance at $4,380 before rising to $6,000.

Share this article

With more than $30 billion worth of Ethereum out of circulation, it appears that prices may be about to experience a supply shock. Still, ETH has at least one barrier to overcome before it can hit new all-time highs. 

Ethereum Faces One Last Resistance

Ethereum looks like it may be primed for a breakout despite the significant gains recently incurred.

The second-largest cryptocurrency by market cap has enjoyed bullish price action in the past 30 hours. It surged by more than 10%, going from a low of $3,470 to hit a high of $3,825. 

The sudden upward pressure has pushed Ethereum toward a critical resistance cluster. The Tom DeMark (TD) Sequential’s risk line, in unison with the 78.6% Fibonacci retracement level at $3,806, is acting as an important obstacle that ETH must overcome to advance further. 

Ethereum’s daily chart reveals that a break of the TD setup’s risk line has typically led to significant bullish impulses. For instance, ETH surged by more than 17% on Sep. 1 after slicing through this hurdle. Similar price action took place on Aug. 4 as Ether gained over 25% in market value once it overcame this barrier.  

Given the lack of any resistance levels ahead of $3,806, it is reasonable to assume that a daily candlestick close above it could result in a breakout. Ethereum could then rise to retest the mid-May all-time high of $4,380, or even enter price discovery mode and target $6,000.  

Ethereum US dollar price chart
Source: TradingView

Wise investors might now wait for a decisive close above the TD’s risk line before entering any bullish trades. Failing to break through this resistance level could instead lead to a considerable correction as the following critical levels of support are represented by the 61.8% or 50% Fibonacci retracement level. These demand zones sit at $3,356 and $3,040, respectively. 

Share this article

Source link

Leave a Reply

Your email address will not be published.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

Previous post Logic Says He Invested $2 Million Into The Cryptocurrency Ethereum
Next post If Crypto Causes 'Instability,' It's Because the System Is Unstable – CoinDesk

Fatal error: Uncaught Error: Call to undefined function jnews_encode_url() in /homepages/36/d855603311/htdocs/clickandbuilds/ChainRadar/wp-content/plugins/jnews-social-share/class.jnews-select-share.php:225 Stack trace: #0 /homepages/36/d855603311/htdocs/clickandbuilds/ChainRadar/wp-content/plugins/jnews-social-share/class.jnews-select-share.php(357): JNews_Select_Share::get_select_share_data('facebook', false) #1 /homepages/36/d855603311/htdocs/clickandbuilds/ChainRadar/wp-content/plugins/jnews-social-share/class.jnews-select-share.php(65): JNews_Select_Share->build_social_button('facebook') #2 /homepages/36/d855603311/htdocs/clickandbuilds/ChainRadar/wp-includes/class-wp-hook.php(303): JNews_Select_Share->render_select_share('') #3 /homepages/36/d855603311/htdocs/clickandbuilds/ChainRadar/wp-includes/class-wp-hook.php(327): WP_Hook->apply_filters(NULL, Array) #4 /homepages/36/d855603311/htdocs/clickandbuilds/ChainRadar/wp-includes/plugin.php(470): WP_Hook->do_action(Array) #5 /homepages/36/d855603311/htdocs/clickandbuil in /homepages/36/d855603311/htdocs/clickandbuilds/ChainRadar/wp-content/plugins/jnews-social-share/class.jnews-select-share.php on line 225