Saturday, January 28, 2023

Ethereum price moves toward $2,000, but analysts say it’s just another ‘relief rally’


On May 30, the cryptocurrency market skilled a much-needed bounce that noticed Bitcoin (BTC) climb above $30,900 and Ether (ETH) rally 5.84% to $1,930, but analysts warn that it may very well be too early to anticipate a reversal.

ETH/USDT 1-day chart. Source: TradingView

Here’s a take a look at what a number of analysts are saying concerning the outlook for Ether shifting ahead and the most important help and resistance ranges to keep watch over.

A bounce off of main help

The May 30 bounce in Ether got here as “no surprise” to market analyst and pseudonymous Twitter consumer Rekt Capital, who posted the next chart, stating that “It’s more about how much #ETH will move from here.”

ETH/USD 1-month chart. Source: Twitter

Rekt Capital mentioned:

“Technically, #Ethereum could rally to as high as ~$2269 to flip it into new resistance. General gist is that whatever this rally turns into, it will likely be weaker than mid-2021.”

Possible restoration to $2,700

Insight into the doable price trajectories for Ether was provided by crypto dealer Ace of Alts, who posted the next chart displaying ETH “currently holding the range lows again for the 4th time.”

ETH/USD 3-day chart. Source: Twitter

Ace of Alts mentioned:

“IF we manage to hold this on the 3D I could see a bounce to the $2,700 region over summer. This area will most likely act as another LH [lower high] in the down trend. However, the R/R [risk/reward] is very good around this level.”

Related: Market-cleansing bear cycles are healthy, say industry experts

Looking for “one more leg down”

While the bounce in Ether price was a welcome sight to merchants, Crypto Tony provided a phrase of warning, posting the next chart and warning to “never lose sight of the bigger picture.”

ETH/USDT 1-day chart. Source: Twitter

Crypto Tony mentioned:

“Yes things are looking nice at the moment, but to me this is simply a relief rally. We have no broken market structure on the time frame and until proven otherwise I am still looking for one more leg down.”

Based on the chart offered, another leg down has the potential to drop the price of Ether into the $1,500 vary.

The total cryptocurrency market capitalization now stands at $1.271 trillion, and Bitcoin’s dominance price is 45.9%.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Every funding and buying and selling transfer entails danger, it’s best to conduct your individual analysis when making a call.