Ethereum price is 10% shy from entering a new bull run

Ethereum price is still testing January’s resistance zone as support.
ETH price is consolidating above a parallel channel’s median line.
A close below $2,300 will invalidate this bullish thesis.

Ethereum price is currently trading at $2,560. Despite the pessimism clouding over the smart contract giant lately, the 2-day chart still hints at a bullish scenario in the future.

Ethereum price is flipping previous resistance as support

Ethereum price should spark optimism amongst investors, as the bulls are currently supporting it above January’s last resistance zone. Secondly, ETH price is hovering 10% above a parallel trend channel’s median line. Consolidation above the median line usually could be a sign for riskier traders who like to enter early and capture more profit from a move.

Conservative traders may want to wait for ETH price to rise an additional 10% and break through the trendline before opening a position. If bulls can manage to produce a breakout on the 2-day trend line, a massive rally could occur back toward all-time high at $4,800, which is 80% away from the current price.

ETHUSDT 2-day chart

The best invalidation when trading a trend channel is a failure in price below the median line. Under no circumstance should ETH price trade 10% below at $2,300. If bears manage to suppress ETH price into the $2,300 low, the bull run won’t likely commence. Bears will be aiming for liquidity under $2,100 and $1,700, up to 30% below current price action.

Share: Cryptos feed

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.