Ethereum (ETH) Must Overcome This Level before Rallying to $6,400
- Ethereum presents a purchasing opportunity, targeting a 60% move.
- However, Ethereum encounters a massive resistance around $3,961, near $4,000, its psychological level.
- Increased selling pressure can see ETH securing sturdy support at $3,465.
Ethereum price displays a colossal bullish target on its daily chart, confirming the leading altcoin is ready for a spike to $6,400. However, Ethereum has to overpower a critical resistance to rally towards its targeted trajectory.
ETH on Discovery Mode
According to the daily price chart, Ethereum price created a cup-handle formation, suggesting that the crypto awaits a massive upsurge. According to the cup’s depth, Ethereum’s chart pattern predicts a 60% surge to $6,394.
However, buyers interested in capitalizing on ETH’s rally should wait for the token to rise past the handle to near $3,961. This price target coincides with the resistance trend-line created on 12 May. Remember, Ethereum has to break past the obstacle to experience the 60% uptick.
Moreover, the ascending triangle formation on the daily price chart also supports the bullish narrative. That results from connecting the multi-month trend-line highlighted above and the ascending line formed since 20 July. The TRIN (Arms Index), which measures the total market sentiment, indicates that buyers dominate sellers. That reflects increasing Ethereum interest.
The psychological level at $4,000 is a challenging obstacle for the alternative coin. Ethereum will require bulls’ commitment plus a substantial surge in buying momentum to rally higher towards its discovery region, beyond its ATH at $4,360.
Meanwhile, ETH will encounter some resistance before heading towards the bullish target mentioned above. The 127.2% FIB extension ($5,092) and 161.8% FIB extension ($6,016) act as critical obstacles for the leading altcoin.
On the other hand, if bulls fail to control the market, ETH would secure the nearest support around the 20-day SMA at $3,622, then the 50-day Simple Moving Average at $3,465. The IOMAP model shows that this is a significant level if ETH sees a downswing. That is because 1.63 million addresses bought more than 11 million Ethereum tokens at $3,465, the average value.
Ethereum might secure additional support at 61.8% FIB retracement at $3,345 before deciding to the ascending support at $3,276. The crypto may not sustain plummets unless it sees sudden sell orders increase.
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