The ETH price breakout from key resistance indicates a fresh recovery in the near term. Should you enter now?
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With the leading cryptocurrency Bitcoin rebounding from the $26000 psychological support, the ETH price witnessed an increase in buying pressure. This second-largest crypto coin has been rising for five consecutive days and recorded a 5.5% gain. Amid this rally, the coin price breached a two-month-long resistance trendline as a signal of trend reversal.
Also Read: Ethereum Price Prediction As The SEC Delays Decisions On ETFs From Ark, VanEck
Is ETH Price Heading to $1800?
- The breached resistance trendline carried the recent correction trend in the Ethereum coin.
- Crypto buyers may face high demand pressure at $1775 resistance
- The intraday trading volume in Ether is $6.1 Billion, indicating a 2.6% loss
Source- Tradingview
Since mid-July, the Ethereum price has been on a downward spiral, plummeting from a high of $2,028 to its current trading level of $1,578—a loss of approximately 21.63%. This descending trajectory is reinforced by a downward-sloping trendline, which has repeatedly repelled bullish attempts to break above it.
The daily chart illustrates four instances where the price has been rejected by this trendline, highlighting the aggressive defense from sellers. Yesterday, the ETH price saw an inflow of buying pressure, leading to a decisive break from this overhanging resistance.
By the press time, this altcoin trades at $1667 with an intraday gain of 0.84%. If the coin price manages to sustain this breakout, the buyers may use this level as a potential support to lead further rallies.
If the bullish sentiment persists, the ETH price may rise 4.7% to hit the immediate resistance at $1745, followed by $1878.
Is Ongoing Recovery Sustainable?
Looking at the bigger picture, the ETH price has been carrying a recovery trend using a long-standing support trendline. The daily chart reveals that this trendline has been holding up since June 2022 and could offer a dip-buying opportunity during significant price drops. If renewed buying pressure accumulates at this support level, it could provide the bulls with the necessary momentum to breach the overhead trendline and aim for a recovery above the $1,800 mark.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
