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Why Is Ethereum (ETH) Poised to Tap $2K in the Next Few Days?

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VOC, Voice of Crypto, ETH

Despite the storm and the general bearishness of the general crypto market, the price action of Ethereum appears to have a few positive signs for its investors and traders.

Over the last day, after hitting support around $1267, the price of Ethereum has started to trend higher and is now testing resistance around $1353.

This price level is above the $1310 level and the 100-period simple moving average, meaning that there is a likelihood of the price of Ethereum trending upwards this time and breaking resistance to reclaim price levels above the $1,400 mark.

So far, the price of Ethereum could gain sufficient bullish momentum if it maintains a clear trend above the $1350 mark.

Ethereum over the past Few Days

Ethereum’s bulls have managed to hold the price above the $1230 support since mid-September. There was even a momentary price pump in late September when the price of ETH rallied upwards by 3% to the $1401 mark.

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Medium-term perspective on Ethereum, showing price action over the last two weeks 

Medium-term perspective on Ethereum, showing price action over the last two weeks | Source: Tradingview

From a medium-term perspective, the price of Ethereum appears to be trading inside an ascending channel and has tested the lower support of this channel a total of three times over the last two weeks.

The price action on ETH has broken through the 0.5 level of the Fibonacci level at around $1338.

The next major support the price of Ethereum has to worry about is the 0.236 Fibonacci level around the $1400 mark, which also coincides with the upper resistance of its ascending channel.

Chart showing Fibonacci levels on the Ethereum price action 

Chart showing Fibonacci levels on the Ethereum price action | Source: Tradingview

A break above this level may provide the upward momentum the ETH bulls need to push back against the bears and see a price rally.

This price rally may push the price first to the $1700 level ETH stood at before the post-merge price decline and then to the $2000 target, which most traders and investors predicted back when speculation about the merge was still fresh hot.

What if the Bulls Fail to Push the Price Upward

If the price action on Ethereum fails to break above the $1366 resistance, a sharp price decline again, straight down to the $1320 level and possibly to the $1274 level.

Any more price declines beyond this point could even send the price of Ethereum straight down to the $1200 level or lower, depending on the price fundamentals when this happens and how active the bears are against the bulls at the time.

 

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Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR  (do your own research)

 

 

 

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Adekunle Joshua is a cryptocurrency writer. He has a deep understanding of the technology and how it can be used to improve the world. James is a strong advocate for using cryptocurrency to make the world a better place. He wants to help people understand the technology and use it to improve their lives.

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