Ethereum (ETH) has been the focus of attention for investors and traders as the weekend approaches. Following the recent market volatility and the subsequent pump in ETH’s price, many are wondering how high the cryptocurrency can surge in the coming days.
Prominent analyst Rekt Capital has provided a detailed technical analysis of Ethereum’s price action, highlighting key resistance and support levels that could determine the cryptocurrency’s trajectory.
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Ethereum’s Weekly Close Below Crucial $3,956 Resistance
According to Rekt Capital’s analysis, Ethereum has closed below the crucial green $3,956 level on the weekly timeframe, indicating that this level is still acting as resistance. For ETH to continue its upward momentum, it needs to close above this level on a weekly basis, similar to its performance in mid-2021.
If Ethereum fails to reclaim the $3,956 level this week, Rekt Capital suggests that there is scope for downside movement. The analyst points to the orange boxed region, where a historical retest point, represented by a blue circle, resides. In mid-2021, ETH needed to perform this blue circled retest to move higher.
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Potential Downside Risk and Key Support Level
While Rekt Capital acknowledges that it seems difficult to envisage Ethereum dropping significantly following its recent ETF catalyst, the analyst emphasizes that if ETH is unable to reclaim the green $3,956 level, there will always be a threat of rejection. In such a scenario, the next major support level would be the orange boxed area, which could serve as a historical retest point.
This potential downside risk highlights the importance of Ethereum closing above the $3,956 level on a weekly basis to maintain its bullish momentum. Failure to do so could lead to a period of consolidation or even a correction before the cryptocurrency can resume its upward trajectory.
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Expert Predictions for Ethereum This Weekend
As investors and traders closely monitor Ethereum’s price action, cryptocurrency experts at Changelly have shared their predictions for the weekend. According to their analysis, ETH is expected to reach a minimum price of $3,818 and a maximum price of $3,878, with an average price of $3,850.
These predictions suggest that, while Ethereum may experience some growth over the weekend, it is unlikely to breach the psychologically significant $4,000 level.
