More

    ETH has more room to run before it reaches seller territory

    • Ethereum is enjoying the favorable tailwind that is going on in cryptocurrencies. 
    • Buyers are very much in control, and one technical element is driving the price up. 
    • Sellers will look for buyers that are taking profit to take over the price action.

    Ethereum is currently busy reclaiming the levels last seen on May 20 of this year. There might be more upside to come as long as the ascending trend line originating from August 19 stays intact. That purple trend line has already been tested four times and held each time nicely, keeping buyers in place and squeezing sellers out of their attempts to take over price action in ETH.

    Ethereum has its mind set on $3,687 but might face headwinds from profit-taking

    The favorable tailwind in cryptocurrencies is helping Ethereum to make a further swing to the upside. Short term, the $3,400-level looks to be the first place where buyers are running into interference from some profit-taking. Most buyers who came too late to the party entered around $3,018, which fell in line with the high from May 20 and created a double top on August 5 and 6. Although ETH was able to break above there, the level got broken a few times to the downside, and buyers had to step in to support the rally higher.

    ETH/USD daily chart

    As long as the purple ascending trend line holds, profits can run up toward $3,687 or 12% higher.  Once again, however, there it can start to get tricky with a former triple top formation on May 17. That level will be one to watch where sellers eagerly try to get some short positions in place. 

    On the downside, it will be imperative that the purple ascending trend line holds. Should that break, expect a quick run toward $3,018. That level, however, looks weak, and a short-term correction toward $2,800 as a psychological level and $2,695 as a technical level could be in the cards.

     

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Ethereum-Based Altcoin Soars 28% In Just One Week As Crypto Whales Dive In: Santiment

    One decentralized finance (DeFi) altcoin is dramatically outperforming the vast majority of the crypto markets amid a major market correction. Maker (MKR), the 52nd-ranked crypto...

    How a Trash-Talking Crypto Bro Caused a $40 Billion Crash

    Do Kwon, a trash-talking entrepreneur from South Korea, called the cryptocurrency he created in 2018 “my greatest invention.” In countless tweets and interviews, he...

    KuCoin Launches Windvane NFT Marketplace, Holds a Series of Welfare Activities for Users

    The top 5 crypto trading platform KuCoin , which has already launched its own  Spotlight token sale module for early-stage projects, spot and...

    Robinhood to Launch Web3 Wallet to Rival MetaMask and Coinbase

    Key Insights: The trading firm wants to let its customers get exposure to decentralized finance. The wallet will be launched in Beta this summer and in...

    Newsletter

    Subscribe to stay updated.