Key areas and price levels to watch
Ethereum has been struggling hard in the bearish pressures that have been weighing on the crypto market over the past few weeks. The ETH price has crashed several times before soaring back to $2,000, dashing hopes of a new all-time high in Q3. However, this decline may be short-lived, as one crypto analyst suggests that the Ethereum price could be preparing for another rally that could send it to its previous all-time high.
Ethereum looks promising on the first week chart
Cryptocurrency analyst RLinda posted a positive analysis on the Ethereum price on the TradingView website. This analysis focuses on the ETH price on the 1-week chart, which remains bullish despite the plunge. This is due to continued accumulation in the low $2,000 range as prices recovered.
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The cryptocurrency analyst emphasizes that Ethereum is being bought in the market after the crash, which suggests that it is showing strength among investors despite the current low price level. Regarding the chart, the analyst notes that “a very promising technical situation is forming in W1.”
RLinda suggests that if the ETH price returns to the global sideways range, several promising conditions could form. In this case, the crypto analyst believes that there could be good reasons for Ethereum to jump to the $4,000-$4,800 range.
Amid all this, the crypto analyst claims that the Ethereum backdrop is still quite bullish. “The liquidation (strong down move) and the subsequent active buying indicate that there are no unnecessary traders in the market and the train is now moving in the right direction. It just needs to reach the main station before it departs,” RLinda said.
Key levels to watch for
The strength of the Ethereum price is positive for the cryptocurrency. However, there are still several important levels that act as important levels for the cryptocurrency to achieve this goal. These include both support and resistance levels.
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In this case, RLinda is paying considerable attention to the $2,717-$2,817 resistance area. These areas are often the most important resistance levels in this uptrend. According to the analyst, if this resistance level is overcome and support is formed, the ETH price will provide a promising liquidity target above $4,000. The full list of resistance levels is $2,717 and $2,817, while the major support levels are $2,518, $2,425, and $2,400.
RLinda believes that the whales’ Ethereum buying shows that major players are still bullish. “After Friday’s test and pullback, the price has returned to the level, which increases the possibility of a breakout,” the crypto analyst concluded.
Featured image made with Dall.E, charts from Tradingview.com
