Ethereum Price Forecast: ETH Retreats After Rising To $3,200 For The First Time Since May

By John Isige
August 9, 2021 Updated August 9, 2021
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  • Ethereum price sustained the hard fork momentum last week to trade at $3,200.
  • A correction is underway, with Ether looking forward to the next support at $2,800.

Ethereum has been on the investors’ favorite list since last week. The Ethereum London hard fork put Ethereum back on the global map as it hit the headlines, with an upgrade that will see gas fees reduced and the protocol making way for the implementation of ETH 2.0.

The gigantic smart contract token made haste above $2,800, a resistance level that had initially barred bulls from gaining ground. As investor appetite for Ether grew over the weekend, the price lifted above $3,000. Ethereum later brushed shoulders with $3,200 for the first time since May.

Ethereum Price Hits The Reverse Button

Ethereum is in the middle of a retreat after suffering rejection at $3,200. As the price shot up last week, holders anticipated a breakout to $4,000 and perhaps a retest of the all-time high. Meanwhile, Ether has slipped beneath $3,000 amid a seemingly strong correction.

It is worth mentioning that if bears increase their positions, overhead pressure will intensify, thus pushing Ethereum toward the following tentative support at $2,800. Note that the Relative Strength Index (RSI) on the daily chart emphasizes sellers’ likelihood of staying in control.

ETH/USD Daily Chart

ETH/USD price chart
ETH/USD price chart by Tradingview

According to the Moving Average Convergence Divergence (MACD) indicator, buyers are relatively in control. However, if they do not resume complete control in the near term, a sell signal will likely emerge. Therefore, the support at $2,800 remains crucial for the resumption of the uptrend and preventing more losses toward $2.400.

On the upside, higher support, preferably above $2,900, could allow bulls to assume control as soon as possible. Moreover, reclaiming the ground above $3,000 will most likely trigger massive gains as investors shift attention to $3,600 and $4,000, respectively.

Ethereum Intraday Levels

Spot rate: $2,952

Trend: Bearish

Volatility: Low

Resistance: $3,200

Support: $2,800

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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