- Ethereum price is hours away from completing a three-day reversal pattern in an ideal support zone.
- ETH shows potential to rally towards $2100, for a rise of 30% from the current market value.
- Invalidation of the bullish trend is is a breach below this week's swing low at $1,594,
Ethereum price is showing downtrend reversal signals. Traders should keep an eye on Ethereum's price movements, as it may be heading towards a potential bullish target.
Ethereum price set for potential bullish move
Ethereum price is currently up 2% on the day as a consolidation phase is taking place between the 8-day exponential and 21-day simple moving averages. Ethereum price remains in a range at the upper bounds of the recent 40% rally since January 1st. Traders may be hoping for a decline towards the descending trend line which was breached during the rally on January 9th and has yet to be retested. Nonetheless, the bullish technicals suggest a retest of the barrier may not be on smart money's immediate forecast.
Ethereum price currently auctions at $1654. The 2% increase may seem like an insignificant talking point about the recent price action, but when considering the wider narrative, the subtle uptick four hours away from completing a 3-day reversal pattern known as a morning star on the daily timeframe. Furthermore, the relative strength index is above the 50 median line after bouncing into a cushion support zone near 40 during the previous low at $1460 on February 13th.
Based on the analysis, Ethereum's price is poised for another upswing higher. The $2100 liquidity zone has been mentioned in various articles as an eye-candy-like bullish target zone. The subtle bullish gesture being displayed at the current time may be the catalyst for the anticipated 30% rise.
ETH/USDT 1-Day Chart
Invalidation of the bullish thesis can come from a breach below this week's swing low at $1594. A breach of the barrier would invalidate the morning star pattern and set up a steeper decline towards the previous liquidity zone, near $1460. The Ethereum price would decline by 13% under the bearish scenario.
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