The recent price jump allowed the second largest cryptocurrency, Ethereum, to rise above the USD 1800 mandatory resistance. The price has fallen below the bullish regions during the recent price crash, which seems to have reversed at the moment. However, the validation of the recovery could be when ETH price clears the crucial levels near $1900, which could soon trigger further gains above $2000.
The price is currently trading within the crucial resistance and support levels between USD 1845 and USD 1758. The price surged above the 100-D EMA levels but has struggled to break above the 200-D MA levels. It suffered rejections during the last day of trading and may continue to do so through the end of the day as the bulls seem to have largely exhausted themselves. So if the price is rejected here, a notable pullback can be expected.
Massive Correction Chases Ethereum Price Rise
Besides, a popular analyst, Benjamin Cowen, also predicts that a huge Ethereum correction is on the horizon. The analyst in one video says the trade setup of the second largest token shows the possibility of a major correction very soon. Cowen specified that ETH price can retest the long-term trend indicator before it starts a beautiful bull run.
The analyst considers the logarithmic regression band, which is designed to track the fair value of an asset.
“What I think is going to happen is we move down to the regression band or we move sideways until it catches up. If we dumped now, if we dumped now, if we dumped to what I called home earlier, that would actually match the earlier low.
Considering the worst-case scenario, Benjamin says Ethereum could also mark the March 2020 lows below $500. However, these targets seem quite different at the moment as ETH price remains significantly strong.