The price of Ethereum (ETH) has stealthily come close to crossing a key level that has been seriously bothering bulls for quite some time.
Although the FED did not give an inch on its monetary tightening, cryptocurrencies managed to spend the week without a hitch. As proof, the price of Ethereum (ETH) has stealthily come close to crossing a key level that has been seriously bothering bulls for quite some time, especially since hesitation currently prevails after the exceptional month of January.
In a market context where bulls and bears are more opposed than ever, there some possible scenarios for ETH, with the challenging task of determining if it will manage to cross a decisive course in order to open a new chapter in its history.
Ethereum in Monthly Units: The $1700 Is Back in Play
Thanks to a January that saw its market capitalization climb by almost 32%, Ethereum is coming back very close to the resistance of $1700. However, the latter is proving to be a headache for the bulls so far. This is because if in appearance, the price of ETH has been stabilizing for a few months.
In the interest of the bulls, the crossing of this resistance would however prevent big troubles during the next months, with the prospect that it completely makes up for the losses of last June and half of last May.
Conversely, a failure below $1700 would not constitute an immediate disaster. If the bears resurface when approaching $1200, though, there could be a resumption of a new wave of correction in the near future.
Ethereum in Weekly Units: the Specter of Another Failure Below $1700
Ethereum narrowly failed to complete the five-week run to the upside, stalling below $1700. as if the bulls inevitably feared yet another failure below this puzzle level. Unfortunately, this potentially negative signal does not come at the right time.
The bulls must hope for a consolidation in the right order, provided that the courses can rely on the support of $1400 near the Tenkan. In such case, the probabilities of crossing $1700 are reinforced for good, with a view to integrating the Kumo and going up towards $2300.
Conversely, a new failure below $1700, along with a breakout of $1400, would bring ETH back to the past. This would give the bears the opportunity to eventually break through $1200 to target last year’s lows, not far from $1000.
In short, Ethereum is once again facing the psychological barrier of $1700. Bulls prefer to signal their absence as they approach a key level. As long as the ETH price remains pegged below the Kumo in weekly units, there will be no reason to consider a possible neutralization of its bear run since its last ATH in November 2021.
By Audy Castaneda