Ethereum priceIt continues to form a bullish chart pattern that predicts a 12% bounce towards $3,820. A close or slice above $3,398 would confirm this optimistic forecast.
Ethereum (ETH)It could face a tough hurdle at the 78.6% Fibonacci retracement level at $3,709. However, looking at the overall picture, Ethereum price may be preparing for a reversal as a bullish chart pattern has formed. ETH bulls will follow a 12% rise towards $3,820 if the token rises above $3,398, confirming the optimistic thesis.
Ethereum Bulls Eyes Up 12%
Ethereum price is currently forming a “cup-to-handle” pattern on the 4-hour chart, suggesting a bullish reversal. ETH needs to slice above the neckline at $3,398 for the bullish target given by the governing technical pattern to be on the radar.
The first resistance line for Ethereum price is located at the 38.2% Fibonacci retracement level at $3,347. If the bulls manage to break through this hurdle, ETH could aim to tag the neckline of the dominant chart pattern at $3,398.
A slice above the neckline could confirm a bullish chart pattern with a 12% gain on the radar towards $3,820.
ETH pricewill continue to face challenges before the optimistic goal is achieved. The other additional first hurdle on the way for ETH is at the 50% retracement level at $3,453, followed by the 100 four-hour Simple Moving Average (SMA) at $3,488.
Additional headwinds could emerge at the 61.8% Fibonacci retracement level at $3,558 followed by the descending resistance line at $3,709, which coincides with the 200 four-hour SMA and the 78.6% Fibonacci retracement level.
Just one slice above the hurdle we mentioned would offer Ethereum price an opportunity to reach $3,820, which intersects with the resistance line given by the Momentum Reversal Indicator (MRI).
However, if the selling pressure builds, Ethereum price will attempt to discover immediate support at the 21 four-hour SMA at $3,245, then at the 50 four-hour SMA at $3,216, coinciding with the 23.6% Fibonacci retracement level.
An additional spike in sell orders could push Ethereum price towards the January 11 low of $2,979.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.