The crypto market cap has added up again, and Ethereum has reacted positively to this latest recovery. It reclaimed $1200 this week and continued to climb higher. The price shot up by 8% in a week.
Ethereum saw a two weeks recovery after the price dipped to $1076 on Binance. Following this recovery, it flipped the crucial $1200 level to $1309 on Wednesday. The price has dropped briefly to where it is trading at $1280.
Though the bulls have shown up again, it appears they might not stay long in the market. The highest price ETH can tap on this recovery is $1400, which is around the channel’s resistance formed on the daily chart.
What Ethereum is experiencing now looks like a retest of the last drawdown in November. The meltdown is expected to resume once it retests the channel’s resistance. Recent choppy price action revealed weakness in buying.
However, if the price breaks above this channel, we should expect huge buying pressure in the market. Following the past days of increase, which is now paused for a pullback on the lower time frame, Ethereum should resume recovery shortly.
And if the $1200 level failed to provide a rebound, the market would continue to maintain a lower low and lower high pattern. If this pattern comes into play, the price will likely fall to $800 in the next bearish move.
Ethereum Price Analysis (ETH/USDT) – Daily Chart
As said earlier, there’s still room for an increase up to the $1403 level. The resistance level to watch above the descending channel is $1509.
Above this level lies the $1678 resistance level, where it initiated sell actions in November. This resistance marks a level of bullish confirmation if the price breaks higher.
On the other hand, if the price pulls back below the $1200 level, there’s still hope for recovery at $1077 – the November low. In case of a breakdown, the potential support to keep in mind is $1000, followed by the $927 and $823 levels.
Key Resistance Levels: $1,403, $1,509, $1,678.
Key Support Levels: $1200, $1,077, $1,000
- Spot Price: $1,280
- Trend: Bullish
- Volatility: Moderate
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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