- Ethereum (ETH) came off $4,100 at the end of August and looked for support.
- ETH support came in the first week of September around $3,018.
- The correction was an excellent opportunity for buyers to step in and make future ETH price action in favor of bulls.
Ethereum (ETH) hit a curb at the beginning of September. With the full retrace of the profitable price action the week before, a descending trend line formed and is limiting further expectations to the upside. Buyers seized the opportunity around $3,018 to add Ethereum to their current or new positions.
Ethereum price is ready for a third test of the cap, near $4,000
Ethereum bulls pulled the trigger on their buy-orders and stepped in near the 55-day Simple Moving Average (SMA) and the historical level of $3,018 originating from mid-May. This entry was offered to the buyers last week and this week. This way, volume is added to the rally, and the pullback was a perfect moment for ETH to have a cooldown.
An instant retest towards the red descending trend line at the top side is not unfolding already because sellers are defending an intermediary entry-level of them at $3,687. That level originates from mid-May and coincides as well with the R2 resistance level from May. This makes this a pretty substantial resistance medium-term.
ETH/USD weekly chart
Expect bulls to sit and wait for their profit targets to arise. The resistance at $3,687 will either break this week or next week. Once through there, it will be essential to see how ETH price action wil behave near $4,000 and that descending top line. For the bulls, the 55-day SMA will edge up as well and act as a supporting factor.
If sellers can overhaul price action and test $3,019, expect a lower break towards $2,695. That level falls in line with the monthly S1 support level and has not been tested thus far on its support. So expect this level to stand firm against the first attempt from sellers.