Amid the past days of recovery, Ethereum followed Bitcoin’s pattern to tap $1352 yesterday. It later dropped to critical support, where the next swing is most likely to occur shortly.
Just as the price actions played out last month, Ethereum broke out of the weekly descending channel (marked yellow) again following a three-week bounce from $1080. The price is now testing this channel as support.
The current trading area is crucial for ETH to decide where it’s heading next. If we look at the setups, the price is expected to rebound at $1270 to sustain the higher high and higher low in the newly formed ascending channel.
But if a rebound fails and the price plunges beneath $1240, resulting in a fake-out and breakdown of these channels, Ethereum will continue to fall until it finds a solid bottom for reversal. As of now, the setup is still looking dicey from a short-term perspective.
If we look at the market structure on the weekly chart, Ethereum’s bearish cycle still appears almost finished from a long-term perspective. There’s still room for a massive sell action if the price drops below $1000.
However, the long-term bearish is reaching an exhaustion point. We can expect a bull run in the next few months. As for now, Ethereum remains bearish.
Ethereum Price Analysis (ETH/USDT): 4-Hour Chart
In case of a rebound, the next buy target to watch out for is the $1403 resistance level. If the market fails to pull back at this resistance level, we can expect an increase towards $1509. The $1678 level would be the next bull’s target if they keep pushing higher.
In the opposite direction, the $1194 support is the level to keep an eye on for a drawdown. Along the way down, it may encounter support at $1160 before dipping to $1080.
Key Resistance Levels: $1,403, $1,509, $1,678.
Key Support Levels: $1,271, $1,194, $1,080
- Spot Price: $1,287
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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Image Source: Photo by Nenad Novaković on Unsplash // Image Effects by Colorcinch
