(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.
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.