ETH Price Rally To $3.4K On Traders’ Radar, Here’s Why – Crypto News

Key point:

Ether (ETH) is witnessing selling above the $3,000 level, but a positive sign is that the bulls have not given up much ground. That suggests the investors are backing it for more upside. Farside Investors’ data shows more than $1 billion in inflows into Ether exchange-traded funds since July 9.

Apart from ETF investors, Ethereum treasury companies have also been on a buying spree, having bought more than 545,000 ETH over the past 30 days, according to recent purchase announcements.

Could corporate and institutional buying catapult ETH higher? Let’s analyze the charts to find out.

ETH price prediction

ETH pulled back from $3,083 on Sunday, indicating profit-booking by short-term buyers above $3,000.

The first support on the downside is $2,879 and then $2,738. If the price rebounds off the support zone, it suggests solid demand at lower levels. That increases the likelihood of a break above the $3,083 resistance. If that happens, the ETH/USDT pair could surge to $3,153 and subsequently to $3,400.

This positive view will be invalidated in the near term if the price continues lower and breaks below the 20-day exponential moving average ($2,734). That suggests the markets have rejected the breakout above $2,879. The pair may then slump to $2,500.

Related: Ethereum investors pile into ETH amid massive weekly surge

The pair bounced off the 4-hour chart, but the long wick on the candlestick shows selling near the $3,083 resistance. The RSI has formed a negative divergence, signaling that the bullish momentum may be weakening.

If the price turns down and breaks below the neckline, the pair will complete a bearish head-and-shoulders pattern. This setup has a target objective of $2,773.

Instead, if the price turns up and breaks above the $3,083 resistance, the negative setup will be invalidated. That could propel the pair toward $3,246 and then to $3,400.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.