Is the Ethereum price on the verge of a Santa Rally?
|- Ethereum price auctions just below a strong resistance level.
- The bulls have forged a 7% ETH rally on the week.
- A retest of the mid-$1,200 zone would make it void of the bullish potential.
Ethereum price shows potential for more upside. As the ETH price rapidly ascends toward significant resistant zones, traders may want to wait for ideal buy signals before entering the market.
Ethereum price aims for $1,400
Ethereum price has investors paying close attention as the decentralized smart-contract token has risen by 7% on the week. On December 14, a bullish trend is displayed on smaller time frames. While optimism entices traders to engage in the market for short-term scalps, ETH price still faces significant resistance above.
Ethereum price currently auctions at $1,338. On December 6, FX'Street's Akash Grimath accurately predicted the recent uptrend spike into the mid $1,300 barrier. According to Akash, the volume profile gaps established in November give ETH the potential to rally as high as $1,545.
A Fibonacci Retracement tool surrounding November's swing high at $1,680 to November's swing low at $1,075 shows the price currently auctioning under the 50% fib level. A flip of the significant resistant zone followed by a brief consolidation should be enough to project the ETH price into higher Fib Targets near the $1,400 zone.
Considering the speed of ETH’s current price action, traders may consider utilizing smaller time frame trading methods like moving average crosses and RSI divergences to mitigate and reduce overall risks.
ETH/USDT 2-Hour Chart
At the time of writing, a breach below the Monday low at $1,238 would invalidate the bullish trend. A violation of the low could lead to a retest of the lower half of November's trading range near $1,100. The Ethereum price could decline by 20% if the bearish scenario occurs.
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