Since the all-time high on May 12, the price of Ethereum appears to be on the verge of making its first significant higher high.
After selling virtually all of his Bitcoin holdings, Mad Money host Jim Cramer said that he is investing in Ethereum.
The bullish thesis would be invalidated and the commencement of a new uptrend will be delayed if the $1,965 support level is broken.
After weeks of downswings, the Etheruem price is attempting to establish a foothold in order to kick-start a big bull movement. If buyers can push Ethereum to a new swing high, it could herald the commencement of a bull run that may drive the price of the cryptocurrency to levels last seen in mid-June.
For Mad Money host Jim Cramer, Ethereum is now his preferred crypto investment asset. Due to China’s recent ban on Bitcoin mining, the host is said to have liquidated nearly all of his BTC holdings.
To fill the hole, the CNBC host stated that he is considering investing in ETH, a smart contract token.
He justifies his preference by stating,

I like ethereum because it allows people to buy stuff much more easily.

He goes on to say that, unlike ETH, BTC has a hard time identifying its utility, whether as a store of wealth or as a money. He goes on to say that the fact that the NFT markets have exploded over the recent bull run enhances Ethereum’s case.
For quite some time, the top two cryptocurrencies have been at odds. While Satoshi Nakamoto described how Bitcoin may be used as money, scalability issues have prevented it from doing so.
Ethereum, on the other hand, has gone an entirely different path than Bitcoin and is more useful. Despite many parallels, both cryptocurrencies have evolved into far more than they were intended to be over time.
Since its all-time high of $4,372 on May 12, the price of Ethereum has not experienced a significant higher high. On May 19 and June 21, the downturn accelerated, resulting in new lows.
However, as the markets try to recoup their losses, Ethereum’s price has gone dangerously close to recapturing its June 21 high of $2,280. The first higher high since May 12 would be achieved if a critical 4-hour candlestick closes above this level, signifying the commencement of a new uptrend.
If this happens, it will encourage previously uninterested investors to join the bandwagon, increasing buying pressure and propelling ETH higher.
While this optimistic scenario is unavoidable, it is possible that it will happen after the smart contract token finds a steady support level to bounce off of.
As a result, investors should expect ETH to drop to $2,045 or $1,965.
After a minor pullback, a surge high above $2,280 will signal the start of a new uptrend, propelling ETH past the 50% Fibonacci retracement level at $2,318 and further resistance barriers at $2,552 and, in a highly bullish situation, $2,640.

4-hour chart of ETH/USDT
However, if the $2,045 support level is breached, ETH will fall to $1,965. As long as the price manages to rebound above $1,965, a break below that level does not pose an immediate threat to the uptrend.
On the other hand, if Ethereum price is rejected at $1,965, the bullish thesis will be invalidated. In this instance, the smart contract token might retest the $1,728 range low.
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