Ethereum (ETH) has been rejected by a horizontal resistance area, but the long-term trend appears to have turned bullish. The price is expected to continue rising towards $2,000.
symmetrical triangle
Ethereum (ETH) price broke out of a long-term symmetrical triangle pattern with a large bullish bar in the first week of January. This suggests that ETH may have formed a bottom.
The move also helped the price break through strong resistance at the 20-week moving average and approach the long-term resistance area of $1,700. Despite price rejection, the downside move only confirmed the 20-week EMA as support (blue arrow). This is a bullish sign, as it indicates that market sentiment has shifted from selling on the upside to buying on the downside.
The RSI has formed a clear bullish divergence above 50, favoring a breakout.
Therefore, ETH may rebound from current levels or the 20-week EMA ($1,500) and break $1,700 on its next attempt. If successful, the price could rally towards the long-term resistance of $2,000.
Weekly ETH/USDT Chart | Source: TradingView
scope of consolidation
After a strong rally since the beginning of the year, ETH is consolidating in the $1,500 to $1,700 range. Consolidation below such strong resistance is a bullish sign as it shows that bulls are in no rush to take profits as they expect higher prices.
The price is currently retesting the support of the range where it bounced strongly the previous few times. Therefore, the price may bounce off this area and test the range’s resistance again.
This bullish view will be invalidated on a break below the $1,500 range support. If so, the price could drop to the $1,350 area formed by the horizontal support and the 0.618 Fib support.
ETH/USDT daily chart | Source: TradingView
get conclusion
The long-term outlook for ETH remains bullish. The price may retest $1,500 in the short-term before attempting another breakout.
You can see the token price here.
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According to AzcoinNews
