The Ethereum price seems to be moving in a very tight range after it was once again rejected at the $2400 barrier a couple of days ago. It seems that the 2nd largest cryptocurrency by market cap is looking for a big move either way but it does appear vulnerable to bearish pressure.
Elon Musk’s recent tweet about integrating Ethereum with Dogecoin gave impetus to ETH but the jump has been rather short lived. The Ethereum price is currently settled at around the $2300 level but a push towards the $2400 and $2600 mark seems unlikely at this stage.
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Short Term Ethereum Price Forecast: Crucial To Remain At $2100 Level
The Ethereum price has been on a consistent charge over the past 8 days where it climbed an appreciable 27% overall. This has been the largest rebound since the May crash and is the 7th time it has recovered in 2021. For 5 times, the rally paused or went lower, whilst the other two recoveries continued to set new highs. So, the likely probability is that the Ethereum price will take a lower turn.
Based on this performance, it is highly likely that the Ethereum price will take a breather or take a move downwards. This means that a test of the descending triangle will have to wait as Ethereum consolidates at the $2100-$2150 levels. If these prices hold, then the pullback will likely be a small one or of short duration.
If the Ethereum price does continue its ascent, then it needs to register a daily close above the $2450 mark before a bullish trend is to be established. However, at this point, this does not look very likely.
If the support line does not hold, then Ethereum may again revisit the $2050 and $1700 lows before it restarts its ascent. If you haven’t yet bought some cryptocurrency, then it would be useful to take a look at these Top Cryptocurrency Brokers.
Long Term Prediction For ETH: Rally Remains On The Cards
Although the Ethereum price has not performed too well over the past month, the expectations are broadly intact. The better performance of Bitcoin could be due to more institutional involvement in the cryptocurrency market by institutional investors. These tend to go towards the largest crypto by market cap.
However, if one looks at the bigger picture, the rally in the Ethereum price remains more or less on course. It is likely that after a small pullback as indicated, Ethereum will once again test the resistance levels of $2400, $2600 and $2900 in the not too distant future.
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Gerald Fenech
