Last month, the price of one Ether (the digital token of Ethereum) surged above $450, and in August, the cryptocurrency briefly hit $650. It was the second-best month for Ethereum, after January 2017 when it jumped to $1,400. As of today, the price has taken a dive, but not all hope is lost for ETH. On Monday, the price of Ethereum is up 0.69% at $532. Then, there are exciting developments in the Ethereum community, with the potential of the blockchain’s native cryptocurrency to get closer to its use-cases.
Ethereum did a 2X in August, is ETH Price on A Path to $6.5k? As Ethereum’s price continues to climb into the $400’s, many are asking if Ethereum will be able to cross the $500 mark. Many are also asking if Ethereum can maintain its momentum and hold $700 for extended periods of time. Ethereum’s price has exploded over the last month, which has seen the crypto-currency’s price rise to $400.
Ethereum is under selling pressure, after having made huge gains in the previous trading month.
To put it another way, since early August, the price of ETH has doubled.
For traders and investors who stuck it out during the super-cycle and doubled their money without using leverage, it’s almost unreal.
The State of the Ethereum Market and its Price
There may be indications of weakening at the time of writing.
This may change if a clear, high-volume conclusive breach over $4k occurs—a round figure and a significant liquidation level.
Between wild ETH bulls and $4.4k, the coin’s all-time highs, the mark is the only thing standing in their way.
Buyers are overconfident.
They point to positive technical candlestick patterns, the full reversal of June and July 2021 losses, and the resolve of the wider trading community as reasons for their optimism. Furthermore, Ethereum’s fundamentals are strong, making it one of the most influential price movers.
The Ethereum technical analysis on the daily chart now favors buyers. It is obvious from this week’s price movement that they are not surrendering. The chances of the trend continuing are likewise higher.
After a short pause, ETH bulls erupted, propelling prices towards $4k and securing buyers despite the late August 2021 contraction. This is just a vote of confidence in the community.
However, how successfully ETH bulls hold in the next days will be determined by how prices finish this week.
Another robust rise over $4k would further encourage bulls, who would almost instantly demand for new all-time highs of $5k and $10k in the medium term.
We’re going to get $5k.
And that’s exactly what’s going on.
One trader on Trading View believes Ethereum prices will break over $4k and approach $5k in the next sessions.
According to the analyst’s daily chart analysis, there is no barrier between $4k and $5k.
As a result, once the currency closes over the psychological $4k mark, Ethereum bulls will be able to easily push the purchasing pedal, propelling the coin to new all-time highs.
He says that the $3.8k level is now the immediate support level, anchoring committed purchasers.
To $6.5k in ETH?
Another trader on YouTube believes the market will continue to rise.
He cycles back to prior historical price movement that created ETH, stating that anytime all-time highs are broken, prices tend to increase 42 percent before retreating, according to the 4HR chart.
As a result, although ETH bulls are thrilled and aiming for $4.3k, holders may have more potential for gains. In that scenario, a breach of $4.3k would send ETH prices soaring to above $6.5k, a 42 percent increase.
Reducing the Fear of Missing Out (FOMO)
Nonetheless, not all traders are overconfident.
Another trader believes that ETH prices may temporarily fall down from current levels owing to profit-taking and reduced FOMO pressure on the daily chart.
Even if demand exists, a closing over $4k would be a significant achievement for bulls aiming for all-time highs.
In that scenario, the price of ETH is at a crossroads. In any case, the upswing will not be as strong as it was in mid-August.
On the other hand, if there is a pullback, ETH prices may go below the local support level of $3.8k and hit $3.3k.
Trading View provided the charts.
Disclaimer: The views presented do not constitute investment advice. Do your homework.