Ethereum (ETH) The price continued to present a bullish outlook after the dip and bounced back to the $3,838 level. ETH bulls aim higher but the upside potential of ETH may be limited to $4,300. Pricing above $4,387 could reveal a 25% rise for Ethereum. Ethereum price declined sharply from $3,838 on Dec. 11, posting a 5% gain above the psychological level of $4,000 on Dec.
ETH While currently supporting the bulls, the token may face difficulties aiming higher as heavy resistance emerges at $4,300.
Ethereum (ETH) Price Seems Unstable
Ethereum price has created a “symmetrical triangle pattern” on the 12-hour chart, indicating indecision in the market. ETH quickly bounced off the lower bound of the governing technical pattern at $3,838 as it sought to reverse the underperforming period.
While the rapid recovery appears to be a promising upside move for Ethereum price, representing a shift in momentum, it could face a tough hurdle that could hinder the ETH rally.
The first hurdle in Ethereum price is at the 50% retracement level from $4,139. Above the resistance below $4,289 for ETH, where the 21 twelve-hour, 50 twelve-hour Simple Moving Average (SMA) and the 61.8% Fibonacci retracement levels intersect, it looks like it will be a tough challenge.
IntotheBlock’s Money In/Out Around Price (IOMAP) model shows that the largest “underwater investor cluster” purchased 12.15 million ETH at an average price of $4,336, posing the toughest hurdle for Ethereum price in the near term.
However, if Ethereum price manages to break through the solid barrier at $4,289, we could see ETH target the next 100, the “twelve-hour SMA” at $4,348.
An increase in buy orders could push ETH higher to reach the upper border of the triangle at $4,387. Traders should note that a slice above the aforementioned resistance will open the possibility of a 26% increase towards $5,416, the bullish target given by the prevailing technical pattern.
However, if the selling pressure builds, Ethereum price could find immediate support at the 38.2% Fibonacci retracement level at $3,989, then at the “200” twelve-hour SMA at $3,890. The lower border of the triangle will also act as a reliable foothold for ETH at $3,854.
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.