Ethereum Poised for $2.5K as Price Now Nears $2K Mark

Ethereum-Poised-for-$2.3K-as-Price-Now-Nears-$2K-Mark
  • Ethereum price is now prepared to reach $2,500 soon.
  • $2,000 is relatively easy to achieve.
  • However, RSI and trading volume suggest a sellout may happen.

Ethereum (ETH) is now showing extremely bullish signals, suggesting that the bottom may have indeed been in for the second-largest cryptocurrency by market capitalization. From a low of $1,650 on August 10, ETH’s current price is now at $1,897.74, according to CoinGecko.

ETH/USDT 4-hour chart (source: TradingView)

The astounding surge in ETH price happened right after the US announced an inflation rate of 8.5%, which is even lower than the expected minimum rate of 8.7%. This caused various markets to surge, including stocks and cryptocurrencies.

As seen on the above chart, the price of ETH is now flirting with the $2,000 psychological resistance level. In fact, it already started to climb back up to $2,000 before getting rejected at $1,945. At the moment, there appears to be a slight correction.

However, ETH has recorded higher highs and higher lows in the last 24 hours. In addition, ETH is trading way above the 50-day and 200-day simple moving averages (SMA). Judging on the trajectory, it may not come as a surprise if ETH climbs back up to $2,000 before encountering a temporary selloff.

ETH/USDT 1-week chart (source: TradingView)

Meanwhile, ETH has been seeing up to five weeks of consecutive green candlesticks. If ETH manages to retain a green candlestick by the end of the week, it would then have six weeks of green candlesticks.

As displayed in the chart above, ETH doesn’t seem to have a strong resistance zone at $2,000. However, the biggest battleground is at $2,500. This will be the most crucial price level to watch out for Ethereum traders.

Conversely, the trading volume has somehow simmered down. Plus, the Relative Strength Index (RSI) suggests that ETH is already overbought. Hence, traders need to be extra vigilant in the coming days so as to view the prevailing trend soon.

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Jesus covers news related to the crypto space in Asia and in Australia, although he follows the latest events in the US and Europe as well. He is most interested in the blockchain gaming and regulation aspects of the industry.