Ethereum Targets $2,000 While A Correction Looms
Crypto Briefing | Mar 10, 2021 01:36AM ET
- Ethereum prices have gone up by more than 16% over the past three days after breaking out of a consolidation pattern.
- While there is more room to go up, the uptrend may be approaching exhaustion.
- A spike in selling pressure could see ETH retrace to $1,600 before it advances further toward $2,000.
Speculation is mounting around Ethereum’s upcoming July upgrade. While market participants grow overwhelmingly bullish, the price of ETH could rise before it retraces quickly.
h2 Ethereum to Revisit Previous All-Time Highs/h2Ethereum is back in the spotlight after enduring a two-week-long consolidation period. The second-largest cryptocurrency by market capitalization broke out of a symmetrical triangle on Mar. 6 that has seen it surge by more than 16% since then.
The height of the triangle’s y-axis suggests that ETH prices could rise by another 5.50%. Thus, a further increase in buying pressure could push ETH to reach a target of $1,960.
While the recent upswing seems to have been fueled by speculation around , which aims to restructure fees, investors must remain cautious.
The Tom Demark (TD) Sequential indicator suggests that Ethereum may retrace after reaching the symmetrical triangle’s target of $1,960.
This index is about to present a sell signal on ETH’s 12-hour chart. It could develop as a green nine candlestick, which is indicative of a one-to-four candlesticks retracement.
It is worth noting that the TD setup has been incredibly accurate at anticipating local tops on Ethereum trends. The three sell signals that this indicator has presented since the beginning of the year were all validated, resulting in significant corrections.
Get The News You Want
Therefore, it is imperative to consider the short-term pessimistic forecast before entering any long positions.
Transaction history shows that nearly 780,000 addresses have previously purchased over 12 million ETH at an average price of $1,600. In the event of a correction, this support hurdle must hold to prevent a steep decline towards $1,300.
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.