- At $1,326, the price of Ethereum has broken through the 2022 volume POC, which shows a weak upward trend.
- If the $1,200 support level fails to hold, this could cause ETH to fall to $1,055.
- After this first drop, people in the market can expect ETH to start climbing to $2,000.
Over the past two days, the Ethereum price has changed in an interesting way, which has made bears happy. On the other hand, bulls seem weak and unresponsive, which could lead to a sharp correction for people who own ETH.
Ethereum price at a crucial junction
The price of Ethereum has been staying just below the 2022 Point of Control (POC) at $1,326, which is where the most Ethereum has been traded this year. This barrier is a level of support, but if it breaks, it could become a hurdle.
Between September 19 and September 21, the price of Ethereum fell below the POC and made a three-day candlestick close below it. This turned the POC into a resistance level. Since then, ETH has tried to take it over but has either failed or not had enough momentum.
With the start of a new month and quarter, investors can expect a manipulative move that first drives the price of Ethereum down, luring impatient bears, and then a quick surge of bullish momentum that pushes ETH up, catching the short-sellers.
So people in the market should be ready for a move that retests the first level of support at $1,200 or the next level at $1,050. In an ideal world, this level would be a good place for long-term investors to buy ETH, which could cause the trend to change and send the price of Ethereum back up to $1,730.
But if the market is very bullish, this rise could go well beyond $1,730 and come back to the psychological level of $2,000.
On the other hand, if the price of Ethereum recovers too quickly and goes above the 2022 POC at $1,326, it will mean that buyers are coming back. This could make it hard for ETH to get over the $1,450 barrier.
But if the price breaks through the $1,730 barrier, it could mean that the initial bearish thesis is not likely to come true.