- Ethereum price is attempting to breach the $4,352 hurdle so it can retest the $4,524 barrier.
- A daily close below $3,930 will confirm a bearish outlook and result in a pullback to $3,413.
- If ETH produces a higher high above $4,773, it will invalidate the bearish thesis.
Ethereum price looks ready for a minor upswing as it bounces off a crucial support area. This upswing is likely to propel ETH up to a recent swing high. If the asset fails to produce a higher high, investors can expect a retracement to ensue.
Ethereum price looks ready for further losses
Ethereum price has recently produced a higher low at $4,022 as it bounced off the $3,958 to $4,094 demand zone. The resulting upswing is grappling with the 50% retracement level at $4,352.
If the buying pressure increases, investors can expect ETH to make a run toward the 70.5% Fibonacci retracement level at $4,524 or extend to the next barrier at $4,596. Considering the bearish outlook of big crypto and major altcoins, investors can expect Ethereum price to follow the same trend and drop down to the demand zone mentioned above.
A decisive close below $3,958 will confirm the start of a downswing. In this scenario, ETH will aim to collect the liquidity resting below $3,911, $3,744 and $3,413. Assuming Ethereum price retests $3,744, it would constitute a 25% downswing from the 70.5% Fibonacci retracement level at $4,524.
ETH/USDT 6-hour chart
Although things are looking ready for a further downswing, a special-case scenario could see ETH wick past the $4,022 swing higher to collect ‘buy stop’ liquidity. This move does not invalidate the bearish thesis. However, a daily close above $4,773 will invalidate the short-term bearish thesis.
This development could see Ethereum price rally past its all-time high at $ 4,875 and toward the $5,000 psychological level.