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Price Analysis

Ethereum Falls, ETH/USD Bulls Say a “Relief Rally” to $3k is Highly Likely

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The Ethereum price draw-down is scary.

For perspective, the coin is down more than $2k after peaking at $4.3k in early May.

Since then, it has been gut-wrenching to watch as bears tear down the second most valuable coin. The coin is now trading above $2k.

Still, there are telltale signs of weakness and unwelcomed possibilities of another meltdown below $2k towards $1.4k in a retest of 2017 highs.

If anything, this forces traders to move their capital to safe havens—stablecoins or fiat—for value preservation.

At the same time, some are taking advantage of this opportunity to double down, loading more on dips expecting more price gains in the days ahead.

Ethereum’s State of Affairs

Ethereum fundamental activities spur this confidence.

Specifically, the London Upgrade–the last hoop concluding the metropolis era–is set for July 2021.

Then, EIP-1559 will go live, introducing Gas burning and more.

On the technical front, the Ethereum daily chart points to weakness.

Indeed, there might have been hints of strength a few days back but bears now that lead. June 18 drop deflated bulls.

As ETH/USD tethers close to $2k, Ethereum bulls must sustain demand, floating ETH prices above this psychological mark lest a sell-off cause havoc.

A “Relief Rally” to $3k Likely for Ethereum Bulls

Amid liquidation, bulls say ETH/USD is open for a “Relief Rally.”

This is the opinion of a trader, BlackisKing, who, based on price action in the daily chart, notes that the ETH price is moving above a rising trend line.

BlackisKing--Ethereum price

Inside a rising bear wedge, the analyst adds, the coin is open to rally towards $3k before the last “flush out.”

Per his projection, the ETH/USD could slump below $1.4k.

It is the same position Mudrex, on Trading View, holds.

Mudrex--Ethereum price

From the 4HR chart, he observes that price action is skewed in favor of sellers—at least in the meantime.

In addition to this, several technical factors sync that could see bulls devastated.

For one, the MACD is increasing in the bear direction. This doesn’t bode well with bulls now that there is a conspicuous bear bar amid increasing trading volumes in the past day of trading. At the same time, the RSI is moving lower, suggesting momentum is building, lifting sellers, crashing buyers as a result.

In general, the trader notes that most oscillator indicators suggest weakness, explaining why price volatility is high.

Therefore, while traders expect a correction and reversal of bear pressure, he cautions against loading at spot rates. Drawing from his analysis, ETH/USD support is at $2.1k.

ETH/USD Price Pivot at $2.1k

On YouTube, Crypto TD identifies $2.1k as a strong pivot point for ETH/USD prices.

Losses of June 18, for instance, fell short above $2.1k before reversing to spot rates, encouraging traders.

If sellers take over and $2.1k fails, ETH prices could crater towards $1.9k.

On the brighter side, if buyers take charge and there are consecutive bull bars above $2.1k—as it stands—buyers might overcome $2.5k, a launching pad for more gains towards $3k.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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