Ethereum price promptly follows BTC as it eyes a retracement to the $2,018 support level. Ethereum price rallied 42% and swept the July 7 swing high at $2409. This move collected liquidity present in the form of buy stops. This development allows the market makers to book profits, which will lead to a pullback.

The support level at $2018, roughly 8% from the current position at 2195, is the perfect foothold for restarting the upswing. A resurgence of buying pressure at this point could push Ethereum price to $2,460 and, in a highly bullish case, $2640 and the range high at $2,894. Regardless of the bullish nature of the Ethereum price structure, the optimistic narrative will face invalidation if the selling pressure pushes ETH to shatter the $2,018 demand barrier.

BULLISH AND BEARISH POSSIBILITIES / CONDITIONS :

Looking at the fundamentals that can drive etherium higher would be the mastercard opening up network to select cryptocurrencies and Governments and central banks poised to deliver more stimulus in regards to that. Fed also to affirm its lower for longer rate stance and Biden to pass additional stimulus. PayPal and Square’s Cash App provides underlying support for Bitcoin while the world’s largest investors place medium to longer-term bets even on Biden to appoint a crypto advocate to lead financial transition which would bring some monetory insights interms of the regulations and expected policies. On the bearish side Delta variant causing concerns, risk appetite disappears. FCA bans Binance and the Quasi-government negative announcement to trigger a meltdown on a short term in shape of bringing some correction to etherium.  China to attempt to ban cryptocurrencies because of the cyber-attacks facilitated by cryptos increase regulatory threat and Bitcoin’s hefty energy use cited as being environmentally unfriendly. Etherium in terms of technicals is in a bullish correction before making a final leg lower. In 4 hourly chart the correction has already begun with wave 'b' in progress and then the final bearish leg c marking the completion of corrective structure. We will update our viewers of the further direction as we get a clear structure, but mostly we will be anticipating a bullish 5 wave impulse as it has broken our trend line and has generated some bullish momentum in the long term. 

ETH/USD FOLLOWING THE FOOTPRINTS OF BITCOIN

Jul 27 2021