As favourable tailwinds hovered in cryptocurrencies, bulls flocked to Ethereum near $3.250, around the 55-day Simple Moving Average (SMA) and the monthly pivot. For the second week in a row, ETH price action has broken above a couple important resistance levels and is building momentum for another move higher, maybe to a new all-time high in Ethereum price action.
Ethereum price action has added more buyers to the rise that began last week. Bulls had a fantastic entry point to come in and stay tight for some solid profits at both the 55-day SMA and the monthly pivot line. Profit-taking occurred near the monthly R1 resistance level of $3.846, causing price action to fade before the conclusion of the week. However, the rally still has a long way to go.
In ETH price action, the fade is regarded as a new discount, with buyers defending $3.391 and aiming to conclude the week above $3.687. After that, a squeeze will occur against the red falling trend line from May, which will be tested in August and September. A break above would be the starting point for buyers who want a greater incentive to join the ETH price movement rather than risk being stopped out so close to the descending resistance.
The price of Ethereum will stabilise with a squeeze against the red declining trend line before breaking above it. This will add new buying volume to the upswing and attempt to retest $4.646 at the very least. A new all-time high would be a crucial media headline that would boost Ethereum price movement even more, with Bitcoin also reaching $60.000.
As price movement fades further, the favourable tailwinds for ETH may turn into headwinds. Bulls will begin to back off and wait for more profitable deals as they believe the ETH price is excessive. Expect bears to go in for the kill quickly and cut ETH price action short towards $2.695. If bears can break the 200-day SMA just below, it might signal the start of a slump towards $2.000.