This simple move can net ETH traders 13% gain
- Ethereum price attempts to break out above the declining trend line connecting the wicks of lower highs formed since November 10.
- The resurgence of buying pressure could propel ETH to the $1,350 and $1,422 hurdles.
- A four-hour candlestick close below $1,210 will create a lower low and invalidate the bullish thesis for ETH.
Ethereum price shows a slight surge in buying pressure, which has pushed it above one of the two immediate hurdles. A continuation of this momentum could lead to a breakout that could propel ETH to trigger a strong recovery bounce.
Ethereum price ready to make a splash
Ethereum price dropped 33% between November 7 and 9, but the recovery rally saw a 25% bounce. Regardless of this initial attempt to fly higher, ETH slipped into a gradual downward consolidation, creating a series of lower lows and lower highs.
Two trend lines can be drawn connecting the bodies of these lower highs and wicks, representing immediate blockades that need to be overcome by ETH bulls. So far, the trend line connecting the bodies has been breached, but investors need to be patient for the next hurdle to flip into a support floor before taking action. This move from the Ethereum price will be a buy signal for the upcoming move.
The targets for this breakout include the equal highs formed at $1,350 and the $1,364 hurdle in proximity. This rally would constitute an 8% upswing, but a flip of the $1,364 level will open a further rise for Ethereum price to retest the $1,422 blockade.
ETHUSDT 4-hour chart
While things are looking up for Ethereum price, a breakdown of the $1,250 support level will be the first sign of weakness among buyers. A four-hour candlestick close below $1,210 will create a lower low and invalidate the bullish thesis for ETH.
Such a development could see Ethereum price revisit the $1,195 support level.