The latest attempt of the Ethereum price to break above its downtrend is underway. Now above the 50 DMA, will ETH finally give the bulls reason to cheer?
Ethereum is trading at $1,984 and up by 5.75% in the last 24-hours. However, still down -7.59% in the last 7 days.
ETH’s current market cap is just north of $230 billion, and its market dominance is 16.8%
The Ethereum price has been trapped under the weight of a downtrend that has been in place since May the 14th, just 2 days after its $4,646 all-time high.
A previous attempt to hurdle the trend line was rejected on June 15th when the price reversed intra-day from a $2,695 high. Unfortunately, it became the start of a nearly two-week downtrend for ETH, resulting in losing almost 40% in the following 7 days.
However, since the 22nd of June, low at $1,651, the Ethereum price has somewhat recovered. Furthermore, the resistance of the descending trend line is now much lower, and therefore, in theory, much easier to pass.
ETH Price Forecast
The 4-hour chart shows that ETH has now formed a strong horizontal support level at around $1,700. Furthermore, the lows from 23rd of May, 22nd of June and Saturday, are all within $20 of the important big figure. Therefore, this should be considered a significant area of price support.
Additionally, the Ethereum price is presently testing the trend line resistance at $1,980. Furthermore, ETH has managed to climb back above the 50-day moving average at $1,949.
Should the price convincingly gain traction above the trend, it should lead to continued bullish momentum. However, the 100 DMA at $2,172 and the 200 at $2,392 will offer meaningful obstacles to the rally. Nevertheless, there are grounds for the Ethereum price to add 50% from here under the right conditions.
An optimistic outlook would target the $2,900-$3,000 range. However, that relies on an improvement to the current disparate crypto market sentiment.
Of course, there is a counterargument. ETH is still below the trend line, and as long as that is the case, it should be considered in a downtrend. Until there is some resolution to this bounce, we won’t know if this is just a knee-jerk rebound from the $1,700 support or something more.
The danger for the Ethereum price would be a return to $1,700. Moreover, after bouncing three times, the fourth may not be so fortuitous.
For now, though, the momentum is higher. And how the price performs for the rest of the day will confirm whether this marks a turnaround in fortune for ETH.