Ethereum rally was looking forward to break the $3000 resistance level after 11 weeks.A breakout above $3240 might indicate the start of a bullish trend. If ETH fails to hold above $3240, a pullback to $2640 seems to be awaited. Ethereum price is at a is at a critical junction in its uptrend as it approaches an major supply barrier. The market current position of ETH is importance because it will decide if the uptrend will continue or lead to a bearish reversal. Ethereum continued to rise, continuing its rally that started on July 20. The impressive 72% upswing shows no signs of slowing as it approached the range high. Breaching this barrier allowed ETH to break the 3000 psychological level. For this uptrend to continue, Ethereum price needs to stay above and create a  daily candlestick close above $3240. Such a move will alter the ranging high into a support level, allowing bulls to retrace to it and a new uptrend. However, if the uptrend fails to stay above $3000 and flip 3240, ETH will likely retrace to 2640, a stable support barrier. This move will allow the bulls to gather steam for a new upswing.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

While things seem bullish for Ethereum price, the correction to $2640 could turn fatal if the sellers shatter it. This development could push ETH down to the 50% Fibonacci retracement level at $2345. A breakdown of the range’s mid-point will shift the favor toward bears and invalidate the bullish outlook.

In some cases, a surge in selling pressure might push ETH down to $2271. Eth is still within ichimoko cloud and is showing some bearish momentum and low supply zone above at 3400 which might become a point of bearish reversal for a short time frame and continue its bullish rally if any of the aforementioned levels are broken with an impulsive fractal and stays for some time as consolidation, creating new supply and demand zone. 

ETHUSD

Aug 07 2021