Once it is finished, getting to that $2,695 will be easy because there aren't many significant technical caps in between. With virtually little price movement this week, the price of ethereum is trading practically flat. Due to the difficulty in following the stream of stories, traders are unsure of what to do next, which is reflected in the price of ETH.
What caused this exactly?
To conduct their deals and raise prices, dealers will likely wait for quiet intervals. The price of Ethereum (ETH) (1) is still under a lot of upward pressure as several technical factors, and tail risk considerations restrain price movement. Although the September rally appeared to be headed in the right direction, bulls could not get above the 200-day Simple Moving Average (2). When FTX collapsed, it could not have happened at a more vital time since it destroyed all the work done for traders; September served as a stark warning that tail risks are real and won't be going away anytime soon.
Bulls to form war strategies as the ETH rises
The price of ethereum has historically followed a pretty straightforward binary path: it was easy to go long and stay long for 2021, and it was easy to turn negative for 2022. The easy part is over, and it's difficult for bulls and bears to decide where, when, and how to trade as the market becomes extremely turbulent. A decent, sound and tight trading plan is the key to surviving the current market momentum.
Due to inflation, the dollar's performance overall this year, the situation in Ukraine, and other current tail concerns, the price of ETH is now being crushed. Technical limits to the upside are the 55-day and 200-day SMAs. ETH appears to be unable to rise above $1,404 again, and traders will likely wait for prices to drop to about $1,000 before opting to build up some positions for a long strategy.
The bulls' toolkit would only expand and have more upside potential if a couple of parts were broken to the upside, turning those important levels into support rather than resistance. The objective is to initially achieve that critical level of $2,695, which would entail a 120% price rise. Even though it would seem unlikely, bulls need to have a weekly close above the 55-day and 200-day SMAs to break both of them. Once it is finished, getting to that $2,695 will be easy because there aren't many significant technical caps in between.
