Ethereum Price Jumps 7% In A Single Day; Is $1,700 Next In Offer?

Ethereum (ETH) price jumps with substantial gains as the week begins. The price is trading in the green for the past few hours. Despite, a negative opening, ETH scaled up to the single-day gains for the first time since August 10.

However, moving forward, the $1,550 remains a critical upside barricade for the ETH bulls. If buyers managed to flip this level, more gains would be pouring in for the second largest cryptocurrency.

• Ethereum price zoomed more than 7% as the buyers hold the grip on Monday.
• Additional buying interest could push the price above $1,550, a critical level to defeat to sustain the gains.
• Reliable support near $1,420  supported the current price action.

As of writing, ETH/USD is exchanging hands at $1,525.23, up 7.45% for the day. The trading volume is at $18.04 billion with more than 39% gains according to  CoinMarketCap data. A rise in volume along with the price is a bullish sign.

Ethereum price looks for more gains

On the daily chart, the Ethereum price analysis implies a bullish day. A strong green candlestick indicates a renewed buying interest in the altcoin.

The price fell below the 0.5% Fibonacci retracement level, the Fibonacci retracement extends from the lows of $1,000 to the swing high of $2,031.39.

However, the formation of an ‘inverted hammer, which is a bullish formation calls for a trend reversal at least in the short term. In addition, the formation of a big green candle in today’s session confirms the buying momentum.

More buyers would be attracted to the gains or the sidelined investors could make a late entry to capitalize on the current opportunity. If that occurs, a breach of the $1,550 level would entice bulls to capture the 0.38% Fibonacci retracement. at $1,620.78.

Next, the market participants could aim for highs made on August 25 at $1,722.18.

The RSI (14) trades below the average line. It reads at 44. Any uptick in the oscillator would advocate for the upside move.

In contrast, failure to sustain $1,500 could upset the current bullish bias. In addition, a daily close below $1,420 would invalidate any bullish outlook.

Also read: https://Just In: CME Group Launches Euro Based Bitcoin, Ethereum Futures

Earlier, the Ethereum price appreciated more than 100% from the lows of $$1,000. After making a swing high of $2,031.39, the price immediately retraced below $1,500. Since then, the price is making lower highs and lower lows, indicating a downside trend.

However, the current market structure indicates the sellers lose their steam as they failed to drag the price below $1,400 mark. We expect a bullish approach at least in the short term.