Ether remains close to its 3 3/4 year high
Ether bullish case:
Ether is trying to revisit Monday’s near 3 3/4 year high at $4,362.90 ahead of Tuesday’s US consumer price index (CPI) print.
The cryptocurrency remains bid while trading above its key $4,105.53-to-$3,941.08 support zone. It consists of the March, May and December 2024 as well as the July 2025 peaks and as such should act as strong support, if retested.
While this support area underpins, an advance above the current August high at $4,362.90 probably remains at hand with the May 2021 peak at $4,381.72 representing the next technical upside target.
Another potential upside target is the November 2021 high at $4,783.83.
Ether bearish case:
Were ether to short-term top out around its current $4,362.90 August high, a slip back towards the major $4,105.53-to-$3,941.08 support area is likely to ensue. If so, it is expected to stem the downside.
Were this not to be the case, the 21 July high at $3,858.25 may be revisited.
Only a currently technically less likely major bearish reversal and fall through the early August low at $3,356.65 would increase the odds of a medium-term top being formed.
In this scenario the area between the February-to-June highs at $2,879.45-to-$2,733.27 might be revisited.