- Ethereum price is likely to undergo a retracement to the $1,202 to $1,218 demand zone to refill bullish optimism.
- A bounce from this level will allow ETH to sweep the buy-stop liquidity above $1,309 and $1,350.
- Invalidation of the bullish thesis will occur below the $1,195 support level.
Ethereum price shows a lack of bullish enthusiam, resulting in three failed attempts to overcome an immediate hurdle. As a result, ETH has slid lower and is likely to continue this path until it encounters a stable support level. This level will be a key area for interested buyers to accumulate the smart contract token for the next leg-up.
Ethereum price sets the stage for next rally
Ethereum price shows a triple tap at the $1,309 level, indicating a failure to overcome this minor hurdle. The latest attempt was on December 5, which resulted in a 4.5% downswing. While there seems to be an attempt at a bullish reversal, investors should pay attention to the four-hour demand zone, extending from $1,202 to $1,218.
This area is key in triggering a run-up since it contains the highest traded volume recorded since November 4 at $1,210, making this a solid support confluence. Interested buyers can accumulate ETH here.
The targets for a rally that emerges here include the $1,309 and $1,359 equal highs, resting above which is the buy-stop liquidity. Assuming Ethereum price sustains bullish momentum after these hurdles, there is a good chance it will revisit the $1,422 resistance level. This move would bring the total gain to 17%.
However, considering the volume profile indicator, there is no resistance level up to $1,545. So, market participants should consider holding their positions up to this level.
ETH/USDT 4-hour chart
While things are looking up for Ethereum price, a breakdown of the $1,202 level will be the first sign of weakness for bulls. If this outlook is followed by a four-hour candlestick close below $1,195, it will invalidate the bullish thesis.
In such a case, Ethereum price is likely to revisit the $1,156 support level to recuperate the losses and attempt the recovery rally again.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.