- Ethereum price is showing its best formation around the $1,350 hurdle, which could trigger a market reversal.
- If the sellers unite, ETH could drop 13% to retest the first target of $1,150 and drop nearly 20% to tag the second target of $1,071.
- A four-hour candlestick close that turns the $1,375 resistance barrier into a support level invalidates the bearish thesis.
Ethereum’s price action over the past few hours has produced two local tops and could catalyze a shift in trend in favor of the bears. Interestingly, the move resembled a similar local top formed in his mid-December, leading to a sharp correction.
Also Read: Bitcoin Price May Crash Hard Ahead of US CPI Release, Dragging Altcoins
Ethereum price at make or breakpoint
Ethereum’s price has risen 16% over the past three weeks and shows no sign of stopping. SMART HIS CONTRACT As his token approaches his $1,375 hurdle, investors should reconsider their prospects for ETH for three reasons.
- Ethereum price has formed two local tops at $1,375, a resistance level that needs to be monitored carefully as it could lead to another sell-off.
- The Relative Strength Index (RSI) is on the overbought grounds and indicates that a trend reversal is likely.
- Finally, Bitcoin price clearly shows a local top formation, leading to a quick correction that could drop as low as $15,443.
Let me explain the first two points.
Ethereum’s price is currently trading within the $1,679 to $1,071 range formed after the 36% crash in early November 2022. A difficult level to overcome.
Additionally, the RSI is producing bearish divergences, indicating that sellers are likely to buy. , suggesting a possible reversal of the current upward trend. Therefore, an investor should exercise caution when trading his ETH.
ETH/USDT 4-hour chart
On the other hand, the $1,375 hurdle is a significant level for Ethereum price.The Volume Profile Indicator shows that very little volume traded between $1,375 and $1,499. Therefore, a successful conversion of the $1,375 wall to a support floor would be a significant development for the ETH bulls.
Such a move would invalidate the bearish thesis and force the price of Ethereum to revisit $1,500 psychological levels.
