The bulls in the Ethereum market have successfully navigated the $3,200 obstacle and set their sights on the psychological barriers of $3,500 and $4,000. An analysis of CryptoCrypto’s technical indicators suggests that the $3,562 range could play a crucial role in the next significant price shift.
The recent upsurge in network activity and transaction volume has underscored the strong demand for the Ethereum network. Projections for Ethereum’s price movement show a decidedly optimistic outlook on longer timeframes post the recent uptrend.
Significance of $3,562 on Extended Timeframes
Just a week ago, Ethereum seemed to have breached an ascending triangle formation, signaling a bearish trend. However, the price promptly reversed and has since recorded gains of 43.1% within a week.
This reversal indicates that the breakdown was a false signal, and interpreting the last two months as a period of consolidation would have yielded more accurate insights. Notably, the On-Balance Volume (OBV) surged to three-month highs, approaching June levels, while the Relative Strength Index (RSI) hit 79.5, indicating robust bullish momentum.
ETH might undergo a consolidation phase in the coming days, particularly as it faces hindrances from price levels seen in June and July. On a weekly timeframe, breaching the $3,562 mark—previously a lower high post-July—could pave the way for a move towards $4,000 as the next price target for Ethereum.
Predicting Further Upside for Ethereum
Examining the liquidation heatmap over the past six months, CryptoCrypto observed significant liquidity bands extending towards the $4,000 threshold.
Of specific importance are the July peaks around $3,562, marking a crucial level on the weekly chart as well as serving as a concentrated liquidity zone. The scarcity of liquidation zones towards the downside implies a higher probability of Ethereum trending upwards in the imminent days and weeks, with traders advised to be cautious of potential volatility in shorter timeframes.
Disclaimer: The views expressed herein do not represent financial, investment, or trading advice, but convey the author’s personal opinion.