Ethereum has suffered greatly from the bearish pressure that has been exerted on the cryptocurrency market over the past few weeks. The ETH price has suffered multiple crashes that have propelled it towards $2,000 once again, shattering expectations of a new all-time high in the third quarter. However, this decline may be short-lived as one cryptocurrency analyst has suggested that the Ethereum price could be preparing for another rally that could push it back to its previous highs.
Ethereum Looks Promising on 1-Week Chart
Crypto analyst RLinda has published a promising analysis on the price of Ethereum on the TradingView website. This analysis focuses on the ETH price on the 1-week chart, which has maintained its uptrend despite the crash. This follows continued accumulation from the low $2,000s as price recovers.
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The crypto analyst points out that Ethereum is seeing a resurgence of buyback in the market after the crash. This suggests some optimism among investors despite the fact that the price remains low at this point. Regarding the chart, the analyst points out that “a very promising technical picture is forming on W1.”
RLinda suggests that a number of promising conditions could form if ETH price were to return to its global sideways range. In this case, the crypto analyst believes Ethereum could see a good reason to surge towards the $4,000-$4,800 range.
Amidst all this, the crypto analyst maintains that the backdrop for Ethereum is still quite bullish. “The sell-off (strong move lower) and the subsequent active buying indicates that the market is cleared of unnecessary traders and the train can now move in the right direction, it just needs to get to the key station before departure,” RLinda said.
Key levels to watch
The fact that Ethereum price is bullish is positive for the cryptocurrency. However, there are still several important levels to watch that serve as important levels for the cryptocurrency to reach this goal. This includes both support and resistance levels along the way.
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In this case, RLinda pays special attention to the resistance zone of $2,717 to $2,817. These areas are mainly the most important resistance levels in this upward push. According to the analyst, breaking above this resistance and forming a support will provide the ETH price with a promising liquidity target above $4,000. A complete overview of the resistance levels is $2,717 and $2,817, while the main support levels from there include $2,518, $2,425, and $2,400.
RLinda believes that the Ethereum buyback by whales shows that major players are still bullish. “After Friday’s test and pullback, the price has returned to the level, which increases the chances of a breakout,” the crypto analyst said in conclusion.
Featured image created with Dall.E, chart by Tradingview.com
