- Ethereum price has been on an exponential rally as it tagged the $4,00 psychological level.
- A minor retracement to $3,716 or subsequent support levels seems likely before a new uptrend originates.
- If ETH manages to recover above $3,863, the retest of the all-time high is next.
Ethereum price saw a massive upswing between August 31 to September 3 as it pierced a psychological level. However, the buying pressure failed to hold up, which is currently experiencing a slow downtrend.
There is a high likelihood that ETH will bounce off a support level and restart its uptrend.
Ethereum price looks to restart its uptrend
Ethereum price rallied nearly 25% between August 31 and September 3 to retest the $4,000 psychological level. This move comes roughly a month after ETH pierced the $3,000 barrier. The smart contract token failed to retest the upper limit of the fair value gap at $4,071 and is currently retracing to gather steam.
A resurgence of buying pressure at $3,716 or $3,524 support barriers could hold the key to restarting the uptrend. In such a case, ETH is likely to push to $4,071, and if the buying pressure continues to build, it could even retest the all-time high at $4,372.
In a highly bullish scenario, Ethereum price might continue to climb to test the 100% Fibonacci retracement level at $4,699.
ETH/USDT 1-day chart
While the new uptrend rests on the assumption that the retracement will exhaust, things will go awry if the selling pressure pushes Ethereum price to $3,345. This barrier is a stable support level; hence a breakdown will indicate a lack of bullish momentum and invalidate the bullish thesis.