26 August 2024
Ethereum is in a classic accumulation phase following its recent correction and is now targeting a $3,000 price. After dropping to $2,116 just 20 days ago, ETH experienced a significant price surge, recovering to higher levels, suggesting bullish momentum was building.
This accumulation phase has drawn the attention of analysts and investors alike, who are now closely monitoring Ethereum’s price action for signs of a more significant move to the upside. The recovery from recent lows has sparked renewed optimism, with some market experts predicting that ETH could reach $3,000 in the coming days.
This potential rally is a critical milestone in Ethereum’s ongoing market cycle, reflecting its strength and investors’ confidence in its long-term value. As Ethereum continues to accumulate and consolidate, the market is bracing for what could be a major breakout, setting the stage for new highs shortly.
Ethereum Price Structure Suggests A Coming Breakout
After a relatively long period of consolidation, Ethereum appears poised for a move toward higher prices.
Analyst and trader Castillo Trader shared a technical analysis on X, highlighting a potential ETH trajectory shift. According to Castillo, ETH will likely retest lower demand at $2,611 before targeting the significant $3,000 mark. The 4-hour chart suggests that this period of consolidation has reached a tipping point, an important move could be imminent.
The $3,000 level is not just a psychological barrier; it has also acted as a support in recent months before breaking down at the start of this month, making it a crucial resistance to break. If Ethereum successfully breaks above this level and consolidates, it could pave the way for a sustained uptrend.
This anticipated breakout could begin a new bullish phase for Ethereum as the market looks to move past the recent period of stagnation and push toward new highs. Investors and traders are closely watching these developments, as the next few days could be critical in determining Ethereum’s direction.
ETH Technical Analysis
Ethereum is trading at $2,743; its next move could go either way. ETH might retest lower demand around $2,500 before attempting to push toward the $3,000 mark. This retest would allow the market to establish a stronger foundation for a sustained uptrend. However, given recent volatility, there’s also a chance that Ethereum could bypass the retest and push to $3,000.
Volatility has shown that anything can happen, and the rapid price movements are a testament to this unpredictability. A crucial technical level to watch is the daily 200 exponential moving average (EMA), currently at $3,026. This EMA acts as a resistance point, and breaking above it would strongly indicate a bullish continuation for Ethereum.
It would confirm strength if Ethereum breaks through the $3,000 psychological level and closes above the 200 EMA. This would solidify the bullish sentiment among traders and investors, positioning Ethereum for a more extended rally.
Featured image created with Dall-E, chart from Tradingview.com