After softer than expected U.S. Inflation data, traders have refocused on the $2,000 price level.
The following is a summary of the information that you will find on this page.
- Ethereum’s price surpassed $1,850 following softer U.S. CPI figures that triggered a wide crypto rally.
- The next price goal is $2,000, according to technical charts and clusters of liquidation.
- Holding $1,850 in support as a key factor to sustain the current bullish trends.
After the Consumer Price Index for June, July 15, 2018, the second largest cryptocurrency rose nearly 5%. came in below expectationsKevin Warsh’s return as Federal Reserve chair has eased fears that rate increases will resume. As investors priced a more accommodative outlook, risk assets surged on global markets. Tech stocks rose alongside cryptocurrency.
Markets for derivatives accelerated this move. CoinGlass data on liquidation shows that a cluster of leveraged positions in the range $1,800 to $1,850 were wiped out when Ethereum surpassed resistance. Forcing buybacks has accelerated the rally to $1900. Meanwhile, the newest liquidation heatmap reveals new pockets of liquidity around $1900 and $1950.
The successful passage of that zone may reveal another liquidation wave and provide a route to the psychological $2000 level.
Technical breakout returns $2,000
The daily Ethereum chart shows that the price has recovered from a number of bottom-rounded formations formed following June’s drop to $1,500. The price has completed a breakout over the neckline at $1,850. This level was the cap of several recent recovery attempts. According to the measured pattern, a price target near $2,190 is possible. That’s a level that was a key resistance area earlier in this year.
Momentum indicators favor the buyers. Aroon Up is above 92, while Aroon Down is at zero. This indicates that bulls are still in control. Relative Strength Index is at around 63. This leaves room for further gains before overbought territories.
The chart shows a bullish pattern. Ethereum has recovered the Fibonacci 100% retracement near $1897, after having held above the 78.6% Fibonacci level around $1815. MACD continues in positive territory and has a bullish movement, while Chaikin money flow readings above zero indicate that the capital market is not leaving the markets.
Commenting Daan Crypto trades, a crypto analyst from X:
“ETH Breaking above the $1.8K level and saw some good continuation so far. The market structure has flipped back to bullish on this timeframe.”
Adding that the next big high-timeframe barrier is located near the $2100 area, he said $1800 support will be critical to the continuation of bullish momentum.
Ted Pillows is another trader who’s closely watched. He believes that the next major milestone will arrive rapidly if current prices are maintained. “$ETH has fully reclaimed its key resistance level. If Ethereum manages to hold above the $1,850 level, the pump towards $2,000 will be next,” He wrote.
Ethereum is still benefiting from the tightening of supply on-chain, even outside charts. The majority of circulating ETH is still locked up in staking. This limits the amount that can be exchanged, even though demand has improved.
Regulatory progress in the U.S. around crypto legislation, as well as spot ETF adoption have kept interest among institutions intact. This is despite several weeks of volatility driven by macro factors such Middle East tensions or government-linked crypto transfers.
The bullish case would be weakened if $1,850 was taken away as a support.
Ethereum faces several obstacles before it can regain $2,000. Liquidation heat map shows highly leveraged positions between $1.900 and $1.950 where sellers could attempt to defend the resistance. Inability to absorb this supply may trigger profit-taking following the recent rally.
There are also macro risks. Risk assets could be affected by a resurgence of inflation, geopolitical tensions driving oil prices higher or unanticipated hawkish remarks from Federal Reserve officials.
Technically, if the $1,850 level is lost, the breakout will be invalidated and attention will shift back to $1,815, then the $1,750 demand area. Ethereum’s ability to defend $1,850 while posting higher highs is crucial. The probability that Ethereum moves towards $2,000 or even the $2100-$2,190 region of resistance remains positive as long Ethereum maintains its current trend.
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Source: crypto.news
