- 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.
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.
Crypto Miners Are Stockpiling Bitcoin and Ethereum Rewards
On-chain metrics and company production reports show that Bitcoin and Ethereum miners are holding off from selling their mining rewards. The value of crypto held by miners has reached new…
Efficient Market Hypothesis: Does Crypto Follow?
The Efficient Market Hypothesis (EMH) is a concept in financial economics which states that security prices reflect all the available information about a financial instrument. EMH is one of the…
Critical Bug in Ethereum 2.0 Staking Pools Safely Patched
Dmitri Tsumak, the founder of the ETH 2.0 staking platform StakeWise, discovered a severe vulnerability affecting ETH staking competitors Rocket Pool and Lido. The exploit has now been patched, with…