Ethereum (ETH) could bounce back to $3800

 Ethereum (ETH) could bounce back to $3800


Ethereum (ETH) has started to consolidate after trading mostly sideways for the whole of the week. The coin however has a lot of potentials, and we may see a decisive break in the coming days. Here are some of the facts:

  • ETH is struggling to maintain the price action above $3000.

  • Ethereum however sits above a strong support zone.

  • The coin will break out and could target $3800 in the near term.

Data Source: Tradingview 

Ethereum’s road to $3800

Despite increased selling pressure at the beginning of trading this week, ETH has managed to stay above the crucial $3000 mark. The coin is however consolidating, and after a period of sideways trading, it could break out in the near term. 

The key for bulls would be to smash past the $3125 resistance zone. When this happens, ETH is likely to maintain an upward trajectory that pushes it to $3800. But if the $3000 mark is lost, the coin will likely drop further towards $2700 before it tries to rise again. 

Momentum indicators are neutral for now but RSI is pushing more towards a bullish scenario. We expect RSI to become bullish in the days ahead as well. Despite this prediction, it is important to note that upward momentum for ETH is capped at $4000. Even though the coin could still test the $4000 price in the weeks ahead, we still expect a firm rejection.

How to trade ETH in this setup?

As noted above, the key to the watch would be $3000 and $3800. If ETH is able to keep the price above $3000 at the close of trading today, you can buy and wait for the bullish breakout. 

But if $3000 is breached, investors should wait until ETH bottoms at $2700 or thereabout before they buy. As for $3800, this is the cap on our prediction. We expect ETH to fall once again after testing $3800, so be sure to exit your position by then.



Source link

Related post

Receive the latest news

Subscribe To Our Crypto Newsletter

Stay informed with our curated information and offers just for subscribers.