Ethereum ETH price climbed almost 100% from July 20 low to the August 16 high before stalling at the 61.8% Fibonacci retracement level of the May-July decline at $3,358. The rally’s strength led to four consecutive positive weeks, putting the run in the top range of four-week price returns since 2018. The resulting price correction has been in time versus price, with the drawdown only reaching 11.69% to date and positioning Ethereum ETH for higher prices in the weeks ahead if the cryptocurrency complex cooperates.

Ethereum ETH price resilience frustrates plans for a big correction

Ethereum ETH price is on pace to close with seven consecutive positive quarters, despite correcting 60% from the May high. The resilience of the secular price uptrend continues to frustrate the bearish forecasts of at least a deep price correction and possibly a retest of the correction low at the $1,700 level.

The recent, successful test of the $2,900-$3,050 level Ethereum price range, framed by the late May and early June highs and the 50% retracement level of the May-July correction at $3,042, cements it as a critical point for the sustainability of the developing rally.

The immediate potential for Ethereum ETH price to reach the all-time high of $4,384 is threatened by the outstanding resistance of the 61.8% retracement level at $3,358 and then the 261.8% Fibonacci extension of the 2018 secular price correction at $3,587, a level that did influence the rally into the May high. Beyond those two levels, Ethereum is free to explore a new all-time high, including a move to the 361.8% extension of the 2018 secular correction at $4,926.

A headwind for Ethereum ETH price is the bearish momentum divergence on the daily RSI as the index did not confirm the August ETH price high with a new index high. It indicates that the underlying momentum has waned, questioning if the bounce from support level has the requisite strength to break the momentum divergence when a new ETH high is printed.

It is critical for the ETH bullish narrative that the $2,900-$3,050 range is durable support. An Ethereum ETH price close below on a daily basis leaves Ethereum vulnerable to a test of the rising 50-day SMA at $2,507 or the 200-day SMA at $2,322 level, provoking a more complex bottoming process for the smart contracts giant.

Ethereum ETH price thrust higher has disposed of many forecasts of a retest of the July lows. Instead, ETH price has opted to correct in time versus price, demonstrating the underlying demand for the digital coin. If the interest is sustained, the Ethereum price can reach the 361.8% extension of the 2018 secular correction at $4,926 over the next few months. It would be an 80% move from the current ETH price. A reasonable projection considering Ethereum price just jumped almost 100% and registered a 100% gain over twenty sessions on the way to the May high.

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