- Ethereum price is trying to slice through a significant supply barrier.
- If successful, ETH could rise by 25% toward $3,400.
- However, a rejection from the overhead resistance may lead to a downswing to $2,100.
Ethereum price looks primed to retrace as the overhead resistance seems to have the strength to trigger a rejection.
Ethereum price might retrace
Ethereum price is currently struggling with a supply zone that extends from $2,689 to $2,843.
A rejection at this resistance barrier will push Ethereum price down to the weekly open at $2,383, representing an 11% downswing. If the buyers fail to defend this level, ETH will slide to the immediate support at $2,101, which coincides with the previous week’s opening price.
Investors could then expect Ethereum price to reverse here and surge by 25% to the supply zone’s lower trend line at $2,689.
ETH/USD 6-hour chart
However, if the May 19 swing low at $1,850 is breached, the short-term bullish outlook would be invalidated. In that case, a spike in selling pressure will trigger a consolidation for Ethereum price where it could slide to the immediate support level at $1,730.
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