(Akash Girimath – FXStreet)
– Ethereum price shows a struggle around the $1,730 resistance level.
– A likely outcome for ETH would be a drop to $1,450 that rids an inefficiency present to the downside.
– Invalidation of this bearish thesis and a potential revisit to $2,000 will occur if the $1,730 barrier is flipped into a support level.
Ethereum price is struggling to move past a significant resistance level that has kept it subdued for roughly two months. The latest attempt has produced a daily candlestick close above it, but the question of sustainability still remains.
Ethereum price is indecisive
Ethereum price shows a massive surge in buying pressure on August 5, which led to an 8% daily candlestick that closed above the $1,730 support level. While this move might be interesting, investors need to keep their optimism in check as the move needs to sustain above this level to confirm a successful flip of this level into a support floor.
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As of this writing, Ethereum price has already moved below the said barrier and is likely to remain indecisive for quite some time. Bitcoin, on the other hand, indicates a potential move to the downside.
Therefore, ETH bulls might be overcome by a surge in selling pressure. The likely outcome, in this case, is a 15% downswing that fills the price inefficiency or fair value gap (FVG) at $1,466. Such a development will provide bulls with a clean slate, signaling a potential trend reversal.
In such a case, Ethereum price will attempt to retest the $2,000 psychological level or the $2,158 hurdle.
However, a change in Bitcoin directional bias favoring the bulls could help flip the $1,730 blockade into a support level. Even in this situation, ETH will likely attempt a retest of $2,000 or $2,158 levels. The only difference is that the risk of a trend reversal is higher in the second case.
While the above outlook makes sense, if Ethereum price produces a daily candlestick close below the $1,284 support level, it will invalidate the bullish thesis. This development could see ETH crash as low as $1,080 or $878, especially in dire cases.
Read Bitcoin Price Prediction: An update on the fractal forecast to $21,000
