$1900 or $2,200. Which Will Ethereum Attain This Week?

Ethereum opens the new week with slight gains after a volatile weekend. It reacted as several fundamentals flooded the market.

The major ones concerned issues in the Middle East. It was filled with a lot of back-and-forth, as usual. When one party claims a breakthrough, then the other urges the public to disregard the announcement.

Nonetheless, Ethereum retested $2k for the first time since March. During one such period when the bearish fundamentals dominated, the market saw significant losses. The bullish news rolled in, leading to an over 2% increase on Saturday.

The positive news also contributed to the price increases on Monday. However, the asset is yet to register any notable change. It recently hit a wall and is struggling to hold prices above $2,100.

In hindsight, the apex altcoin ended the previous week with slight losses. While it registered another session of downtrend, the candle spread a slight glimmer of hope.

Nonetheless, the performance for the next six days is clouded in uncertainty. Investors remain largely unaffected[ by the recent attempt at an uptrend. Evidenced by Sunday’s price action, the bears are still lurking and may swoop anytime from now.

Aside from price movements, economic data over the next six days is another source of concern for buyers. The US BLS will release initial jobless claims on Thursday, and GDP, personal income, and spending the next day.

The general consensus for these reports is negative; the crypto market will likely react negatively if they come out as expected.

On the flip side, the peace draft between the US and Iran is nearing its final stages. Based on the latest comments from the concerned parties, they will sign the agreements this week.

Ethereum May Have Peaked

The altcoin is trading at $2,120 at the time of writing. Based on previous price action, it is holding on to a fragile level. However, it neared the $2,160 resistance a few hours ago but was rejected.

Drawing on what happened in the previous week, the asset is trading close to its peak or may have reached its highest level this week.

In hindsight, it reached a high of $2,156 last Monday. That was the highest level it attained throughout the week. If the trend repeats this session, the altcoin may have peaked.

The likelihood of this playing increases, given the scheduled economic data releases and their expected outcomes. Aside from fundamentals, the derivatives are another factor supporting predictions of no surge past $2,160 this week.

The liquidation heatmap from Coinglass shows notable clusters around the highlighted barrier. As it stands, shorts worth over $100 million will be rekt if prices exceed the resistance. Interestingly, the number keeps rising as traders flip bearish.

However, the 1-day chart offers a contrary prediction. Indicators on this scale are gradually flipping bullish. One such indicator is the moving average convergence divergence, which shows the 12- and 26-EMA closing in on each other.

Both indicators are converging, which may result in a positive crossover in the coming days. It is also a bullish signal, which may translate into further price increases.

Additionally, the asset is trading close to bollinger’s lower band. It dropped below the metric on Saturday, but has since rebounded and is trading considerably higher at the time of writing.

In summary, the chart indicates that Ethereum will see notable increases this week, and attaining $2,200 is likely. However, fundamentals and derivatives are the biggest hurdles to this movement.

A Slip to $2k

On the 1-week scale, Ethereum prints no clear signal as to where the price will go. Last week, it printed a candle that could indicate an impending recovery this week. Its rebound at $2k may indicate that the bulls are finally waking up.

A bullish performance over the next six days becomes more likely given that the asset experienced massive losses two weeks ago. Additionally, MACD also had a bullish crossover a few weeks ago, further increasing the likelihood of an uptrend.

However, the altcoin created a fair-value gap following its sharp recovery. If it fails to flip the $2,160 barrier, it may retrace to fill this gap.

It is important for Ethereum to surge this week, as a failure could result in MACD reversing its bullish crossover. Last week, the histogram printed a shorter bar. A smaller bar will appear at the end of the session if the asset fails to surge.

Ethereum to $2,250

If Ethreum breaks the $2,160 barrier, it may surge above the projected high. Options offer an insight into how high it may go. The biggest expiration of the month will happen on Friday. The notional value is currently $1.36 billion, with 639,768 open interest.

Zooming in, the bulls are leading, with calls accounting for more than 355,331 of the total interest. The max pain price is $2,250. Push price above the pain price and the bulls reel in profit, close below and the bears profit.

It is easy to conclude that the calls will win based on their sheer number. However, the option Greek table shows they must overcome a critical hurdle. The market maker goes fully bearish at $2,150, adding massive shorts as delta is fully positive.

However, if prices flip this key mark, the shorts relax. The possibility of a surge above $2,250 also increases.

In other events, the sentiment surrounding Ethereum may spill over to its fork. ETC is currently up by over 2% on Monday. It also tested bollinger’s lower band a few days ago. If ETH experiences notable increases this week, the altcoin will likely follow suit. Currently trading at $9, it may surge above $10 in the coming days.

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