More On: eth
Over $7 billion has been taken out of Tether, prompting further concerns about the stablecoin's support
- As the token continues to consolidate, the price of Ethereum may fall to find critical levels of support.
- An increase in bullish sentiment could send ETH higher, with the next target being $3,272.
- At $2,851, Ethereum may face the most difficult challenge.
Before moving higher, the price of Ethereum may continue to fall in order to find critical levels of support. ETH will have to overcome a number of difficult obstacles before it can attempt to break through the upper boundary of the governing technical pattern at $3,272.
The price of Ethereum is testing critical levels of support.
On the 12-hour chart, Ethereum price has formed an ascending triangle pattern, indicating a long-term bullish outlook. However, momentum has shifted to the downside, and ETH may fall below multiple levels of support.
The 50 percent retracement level at $2,719 is the first line of defense, followed by the 61.8 percent Fibonacci retracement level at $2,587.
At $2,398, the lower boundary of the prevailing chart pattern will intersect with the 78.6 percent Fibonacci retracement level, an additional foothold will emerge.
Further selling pressure may incentivize sellers to cut below the downside trend line of the governing technical pattern, invalidating the long-term optimistic outlook.
If buying pressure increases, Ethereum price may encounter immediate resistance at the 21 twelve-hour Simple Moving Average (SMA) at $2,747.
The 50-day simple moving average, the 100-day simple moving average, and the 38.2 percent Fibonacci retracement level will all intersect at $2,851 next.
If there is a surge in buy orders, Ethereum may rise to the 23.6 percent Fibonacci retracement level of $3,015. An increase in bullish sentiment may push ETH higher toward the Momentum Reversal Indicator (MRI) resistance line at $3,156 before the token reaches the upper boundary of the prevailing chart pattern at $3,272.
Slicing above the governing technical pattern's topside trend line will put the Ethereum price on track for another 33 percent rise toward $4,372.
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