Ethereum Price Surge To $5,500: What To Watch Out | Crypto News
Coming out of weeks of downtrend, the Ethereum price might be trying to set up the next backside as it units up for a marketing campaign toward new all-time highs. This is highlighted by crypto analyst MMBTtrader, who explained that the Ethereum price crash might be coming to an end. This is evidenced by a quantity of formations on the Ethereum price chart that recommend where the next lift-off would possibly start.
Ethereum Price Is Testing The Next Major Support
In an analysis shared on the TradingView web site, the crypto analyst explained that the Ethereum price is now testing the next essential technical degree. The significance of this degree comes with a 50% retracement of the Fibonacci sequence. Thus, it means that the Ethereum price is seeing major assist at this degree.
This assist lies just above the $3,200 degree, which the Ethereum price had managed to preserve through the market crash. This places the crucial degree at the 0.5 Fibonacci assist, which presently serves as the next make-or-break degree for the cryptocurrency.
If the Ethereum price is in a position to bounce off from right here, then it might set off the next wave of recoveries for the cryptocurrency. Not only that, it might be the signal that the underside is finally in and the crash is over. The analyst additional explains that this could lead on to “a high-probability setup for a resumption of the primary bullish trend.”
Such a breakout would lead to a quite strong bullish transfer for the digital asset, and the goal from right here can be a model new all-time high. The first goal from right here can be $5,500 as bulls push the price increased. “This target is derived from the magnitude of the prior uptrend and represents a key resistance zone on the higher timeframes,” the analyst explained.
The Bearish Side Of The Coin
The 0.5 Fibonacci degree, as explained above, is a make-or-break degree. This means that whichever direction the Ethereum price takes after hitting this degree might decide where the cryptocurrency is headed next. With the bullish facet already explored, there’s still the chance that Ethereum fails to set up assist and a backside.
In the event of the Ethereum price truly breaking below this essential degree, then it might affirm the bearish strain that has plagued the market. The analyst highlights on the chart that if the assist breaks, then Ethereum might dump additional below $3,000, with the major assist mendacity just above $2,400.
Such a decline would imply an over 30% crash for Ethereum, on top of the already struggling price. Therefore, it’s crucial that bulls maintain above $3,200 to stop additional decline.
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