After the surge last week, the price of Ethereum (ETH) is in a favorable position. However, nothing is guaranteed because bulls must first defend a few crucial levels in order to be in the clear. To predict where ETH will go next, investors must keep an eye on the major obstacles.
Ethereum’s price is nearing a turning point
The Ethereum (ETH) price surged 19% between October 19 and October 25, breaking over the $1,650, $1,670, and $1,727 barriers. At $1,865, this move produced a local top, and it is currently evaluating its next move.
Investors should anticipate that the price of Ethereum will eventually retrace and find support at the previously indicated boundaries. This action will support the bullish thesis by enabling the daily Relative Strength Index (RSI) to reset at the 50 mean level.
Ethereum’s price may reach the psychological $2,000 mark and the range high of $2,030 with a significant rebound. When ETH attempted to clear this obstacle in mid-April, it was unsuccessful. Therefore, entering this market will be crucial for the smart contract token’s long-term prospects.
Opening the way to the next significant resistance level at $2,424 will require clearing the $2,030 barrier or turning it into a support floor.
Although the optimistic forecast is reasonable, it is reliant on Ethereum’s price being above the $1,727 mark. The bullish argument will be refuted if there is a daily candlestick closure below this level and a collapse of the $1,650 support level.
In such a scenario, the price of Ethereum might drop to collect the sell-side liquidity that is residing below the swing lows that were made on September 10 and October 10, or it might rise again above $1,551.