Why Ethereum’s Rebound May Be Limited at $2,070

ethereum price analysis
  • After rising 6% on the day, Ethereum was trading at $1,900 with a bullish bias.
  • The 200 SMA and the IOMAP model indicated that Ether’s upward potential was limited to $2,070.
  • If the $1,800 threshold is breached, ETH might fall to $1,600.

After stabilising near $1,800 since June 2, Ethereum’s native token ETH began a bullish surge. This rash action has sent the smart-contracts token back beyond $1,900, following a 6% gain in the previous 24 hours. Technical and on-chain data, on the other hand, suggested that the bull’s short-term aim might be set just above $2,000.

On the four-hour chart, ether was trading at $1,900 within a descending parallel channel (below). The 100 four-hour Simple Moving Average (SMA) at $1,880 and the 50 SMA at $1,846 provided instant support for ETH at this level.

Ethereum’s limited upside was also reinforced by IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, which revealed that the area around $2,079, where the 200 SMA lay, was where the near-term upside was limited. 1.46 million ETH were previously purchased at this price by around 892,500 addresses, who could withstand any attempts to drive the price higher.

Source: IntotheBlock

In a bearish scenario, the largest altcoin may fall to seek refuge around the bottom limit of the chart pattern at $1,653 or the psychological level of $1,600.

Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please do your own research.