After more than a month of consolidatory ranging, Ethereum (ETH) price remains steadfast in a tightly fought range.
Currently trading at $1,858 (a 24 hour change of -0.79%), Ether appears to have once again been rejected by a tough ceiling of resistance at $1,925.
Now in a minor -3.60% retracement move, markets are on edge as ETH heads for a retest of support at the tricky MA20.
Ethereum (ETH) Price Prediction: Rain or Shine?
With technical structure fighting to resume, and on-chain signalling suggesting a shift in market sentiment from distribution to accumulation, the ostensible downside slide of Ethereum might not be all it seems.
If Ethereum bulls can successfully defend the MA20 mark, forming a new support level – then ETH price is likely to push up to $2,000 (+7.4%).
However, downside risk isn’t insignificant, if the MA20 giveaway – then ETH price could plummet back down to local support at $1,785 (-4.15%).
This leaves Ethereum with a Risk: Reward ratio of 1.78 – a fair entry.
But despite the attractive risk: reward ratio, returns here are limited by price structure – if an investor committed $1,000 to an Ethereum long position, they could only expect to make a poxy $74 in the best case.
While nothing to be laughed at, these aren’t the lucrative returns that draw people to crypto, and indeed many retail traders are looking to assume more aggressive risk profiles in order to fuel seismic gains.
One such opportunity, leading the pack with the huge promise of using blockchain to unlock the climate change conundrum, is Ecoterra.
This article was originally published by CryptoNews.
