Ethereum’s recent breakthrough of its key resistance level has sent shockwaves through the crypto market, leaving investors wondering what lies ahead for ETH price. Will this momentum continue to propel Ethereum’s rally to new heights, or are we in for a pullback?
Following the news of Bitcoin ETF, the crypto market has gained significant value movement. The information has attracted more institutional traders, resulting in the price experiencing a massive jump in value.
Bitcoin price has recorded a surge of over 19% in value in the past week, breaking the price out of its important resistance level of $31,000.
The Ethereum price has displayed a massive price action in its value and has followed the footsteps of the market leader as it has jumped over 14% within the past week, resulting in the altcoin breaking out of its key resistance at $1,745.26 for the first time in over 50 days, further indicating a bull power in the market.
ETH price had witnessed a significant fall in its value from $1,850 to $1,650 during mid-August, following which the star altcoin lost momentum and started trading in a closed range of $1,600 and $1,686. The coin attempted to break out and start a bullish jump, but the price repeatedly got rejected at $1,745.26, making it a key resistance level.
Further, the ETH coin was seen trading under a bearish influence, resulting in the coin breaking down its crucial support level at $1,600. Ethereum then started trading close to its lower support level at $1,539.01 for a short period, following which the market gained momentum.
The ETH price broke out of multiple resistance levels to test its important resistance level at $1,800 and successfully managed to cross it, but the rally was short-lived as the bears pulled back the price below the $1,800 mark, forming a long wick in the chart.
The MACD displays a robust rising green histogram in its chart, indicating a massive ongoing price action for the Altcoin. Further, the averages show a rising pattern, suggesting the price to continue rising in the coming days.
Will ETH Price Rise Again?
If the bulls continue to hold the price and push it above the $1,800 mark, the ETH price will regain momentum and prepare to test the upper resistance level of $1,916.13 soon.
Further, if the bulls continue to dominate the market, the price will make a run to reclaim its $2,000 mark in the coming month.
Conversely, suppose the bears regain power over the bulls, and a trend reversal occurs. In that case, the ETH price will experience a drop below its support level at $1,745.26 and continue to plunge and test its lower support level of $1,686.77 in the coming days.
Moreover, if the bulls fail to hold the price at that level, the price will continue to dip and test its crucial support level at $1,600 in the coming days.