Ethereum reverses weekend dump from local high; will ETH surpass $3.2K?

“Jumping in Reverse” by IceNineJon is licensed under CC BY-NC-ND 2.0

ETH/USD exchange rate moved up after dumping 10% from $3,200
The recent rally is a breakout from a bullish pennant setup since May
Sustained pressure could lead Ether to $3257

JAIPUR (Coinchapter.com) – Ethereum’s recently concluded blockchain upgrade redefined the platform’s economic model, as well as brought back the pre-May crash bulls.

Long-term investors bought ETH/USD’s 10% dip from $3,200 to $2,889 to push prices back above $3,000 to $3,145 on Monday. The same reinstated the bullish sentiment that seemed dampened on Sunday.

Analysts are now calling for a rally to $10,000.

“You probably don’t want to be stuck in NFTs when $ETH heads to $10,000… Especially not a JPEG of a rock,”
said Twitter-based crypto trader and technical analyst going by the handle name – “TheCryptoCactus”

The spot pair’s ongoing rally translates to a breakout from the declining trend after falling from all-time highs near $4400. And the decline itself translates to a bullish pennant pattern setup.

Ethereum Technical Setup

Ether buyers attempted several recoveries during the downtrend, but all bullish reversals faced bearish drawdowns. The ETH/USD exchange rate tested the pennant’s bottom on several occasions until the B-word conference on July 20. Elon Musk’s ETH ownership admission was enough to get buyers back in action.

Akin to the second-largest cryptocurrency’s reprisal 20 days before the Berlin hard fork on April 15, ETH/USD’s bullish trajectory took shape on July 20 and culminated with the pair hitting $2,884 on the day of the London hard fork.

The Ethereum underpinning asset is doing rounds above $3,100 as of writing. But there’s more to the upside than meets the eye. ETH/USD lost approximately $1,200 in a cascading series of drops during the May 19 crash. The same becomes the yardstick (pennant structure depth) of upside calculation in the ongoing rebound.

Ethereum’s ETH could reclaim $3257 as per calculations. Source: ETHUSD On TradingView.com

Upon adding $1,208 to the launchpad of the breakout at $2,049, the upside target works out to be $3,257, implying that the ETH/USD pair still has to scale up to higher by 4.5% to justify the calculation.

Once Ether bulls flip $3257 into support, the road to $3,500 would be a smooth ride. And in case the said scenario doesn’t work out and sellers take over, we are looking at a retest of the $2,800-2,900 range again.