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An ETH treasury purchase by SharpLink Gaming boosted investor sentiment, clearing the path for a potential rally to $3,153.
Ether (ETH) price entered a strong uptrend this week, leading many analysts to predict a rally to $3,000 before the end of July. These traders cite an uptick in spot ETH ETF inflows and multiple corporate Ether treasury announcements as a primary factor in the recent bullish momentum.
SharpLink Gaming said it had purchased 7,689 Ether (ETH) between June 28 and July 4, at an average price of $2,501. That has boosted the sports betting firm’s holdings to 205,634 ETH, worth more than $533 million.
Could ETH prices rally in anticipation of more companies adopting an ETH treasury strategy? Let’s analyze the charts to find out.
ETH price prediction
ETH rallied sharply on Wednesday and broke above the stiff overhead resistance of $2,738, indicating aggressive buying by the bulls.
The 20-day exponential moving average ($2,561) has started to turn up, and the relative strength index (RSI) is in the positive territory, indicating an advantage to buyers. Sellers are expected to fiercely defend the $2,879 level, but if the bulls prevail, the ETH/USDT pair could surge to $3,153 and later to $3,400.
Sellers are likely to have other plans. They will try to pull the price back below $2,738. If they do that, the pair could drop to the 20-day EMA, which is a crucial level to watch out for. If the price rebounds off the 20-day EMA, the bulls will again attempt to drive the price above $2,879.
On the other hand, a break below the 20-day EMA suggests the pair may remain inside the $2,111 to $2,879 range for some more time.
Related: Ether rally to $3K this week highly likely: Here is why
The pair’s rise above $2,800 pushed the RSI into overbought territory, suggesting a pullback or consolidation in the near term. If the price slips below $2,738, the pair could reach the 20-EMA on the 4-hour chart. A solid bounce off the 20-EMA shows that the sentiment remains positive and the bulls are buying on dips. That increases the likelihood of a rally to $2,879.
Contrarily, a break and close below the 20-EMA suggests the bulls are booking profits in a hurry. That may pull the pair down to the 50-simple moving average.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
