Ethereum Could Be On The Verge Of New All-Time Highs
Crypto Briefing | Oct 15, 2021 01:04AM ET
Ethereum looks bullish as resistance weakens. 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 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.
Get The News You Want
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.