Ethereum price has fallen back into a significant support level, failing to sustain the breakout in place. Even though there is skepticism around the short-term retreat, the larger technical pattern is still indicating the possibility of a move to the $10,000-$12,000 region in the long run.
Ethereum Price Tests Key Breakout Zone Again
On July 18, a crypto analyst, Rod, highlighted that Ethereum recently broke above the neckline in a cup-and-handle pattern, which is considered a bullish continuation pattern. However, the breakout did not last long and caused the price to drop again, retracing to the same level.
The neckline was situated between $1,825 and $1,850 levels, which served as resistance many times before ETH broke out from it. When ETH reached almost the $1,930 level, it lost momentum, and now the coin is back at that level again.
In case the buyers succeed in holding the neckline, it will mean that the previous resistance level has successfully converted into support. This development may help ETH rally back towards the $1,900-$1,950 price area, with $2,000 being the next major level of importance.
Conversely, should the Ethereum price fall below $1,825, then the breakout will have been a fake-out signal. Consequently, prices will head towards $1,775, with the next level of significant support at $1,700.
Also Read | Solana Price Signals Trend Reversal as Tokenized Equities Volume Hits New High
Ethereum Long-Term Chart Still Points Toward $10,000
Even with the latest dip, Ethereum is still trading closer to the lower boundary of a lengthy ascending channel that has formed the price trajectory of the token over the past few years.
Another analyst, Centurion, pointed out that Ethereum has successfully defended its weekly demand area from $1,537 to $1,683, after which it returned above its long-term trendline, suggesting that the previous decline below the support level was probably just a short-term event.
The first step that the Ethereum price needs to take is to stay above the $1,700-$1,800 support range. If the asset manages to stay above that mark, then investors can expect buyers to move towards testing the price above the $2,000 mark and beyond.
Success at these levels may see a resurgence of the Ethereum price to close in on the all-time high seen at $4,800. Should demand keep pushing up, the targets will be found at $6,400, and further up is the long-term channel ceiling, which projects a potential climb to $10,000-$12,000.
Key Support Will Decide the Next Move
However, while the future looks promising, Ethereum needs to maintain positions above the key support levels. Should the Ethereum lose the $1,537-$1,683 buying zone, this will negatively affect the ongoing recovery phase, driving the asset towards the $1,200 area before a new attempt at recovery.
At the time of writing, ETH is trading at $ 1,839.84 with a 24-hour trading volume of $ 7.27 billion and a market capitalization of $ 222.05 billion. ETH price increased 1.36% over the last 24 hours.
At the moment, the Ethereum price is sitting at a critical crossroads. Maintaining the present breakout level will help in continuing the uptrend, but losing support will probably delay the move towards the five-digit long-term target.
Also Read | BNB Price Holds $566 as Franklin Templeton’s $1.5B Milestone Boosts Outlook
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
