(Akash Girimath – FXStreet)
– Ethereum price has flipped the $1,700 resistance barrier into a support level, signaling a resurgence of bullish momentum.
– With no hurdles in sight till $2,000, all ETH needs to do is stay above the $1,700 foothold.
– A daily candlestick close below the $1,543 support level will invalidate the bullish thesis.
Ethereum price has done the unthinkable over the last 24 hours and flipped an important hurdle into a launching pad. All that’s left for ETH to do now is to maintain this momentum and rally to new hurdles.
Ethereum price makes best of the worst situation
Ethereum price walked the last mile after falling short of retesting the $1,700 resistance barrier on July 25 and July 28. However, it made sense for ETH to exhaust as it had rallied roughly 65% between July 13 and July 24.
The FOMC-induced rally seems to have had more to give. After a brief consolidation around the $1,600s, the Ethereum price triggered another run-up that not only retested the $1,700 hurdle but also pushed above it.
This is a significant development for ETH bulls with more upside on the horizon. But this optimism is dependent on how well the buyers can safeguard the newly flipped $1,700 support level.
In a bullish case, the $2,000 psychological level would be the next target, but this move could extend to a proper resistance barrier at $2,158.
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While things are looking good for Ethereum price, a breakdown of the $1,700 support level would reveal a blow-off top. In such a case, the declining momentum could drive ETH lower to revisit the $1,543 support level.
Here, buyers will get another chance to trigger a rally. A daily candlestick close below this level, however, will invalidate the bullish thesis for ETH and potentially catalyze another crash to $1,080.
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