After the market crash that rocked the Ethereum price, sending it back down toward $3,400, there has been some recovery as the market has followed Bitcoin’s path once again. However, there is still a lot of struggle between the bulls and the bears when it comes to the direction that the Ethereum price could be headed next. To this effect, an analyst has pointed out some interesting formations on the Ethereum chart, and what could trigger a rally to $14,000.
Two Things Must Become Bullish For The Ethereum Price
Crypto analyst Without Worries outlined that there are two questions that Ethereum investors must ask in order to determine if the price has turned bullish or not. The first of these questions centers around the current trend, asking whether it is bearish or bullish.
The analyst explains that with the break of $1,600 and the Ethereum price moving higher back in April, the trend has turned more positive from here. Hence, as long as this is maintained, then the trend does indeed remain bullish, leading to the second and most important question.
This question centers on the Ethereum price action, and the problem here is that the altcoin continues to trade under resistance. This major resistance lies at the $4,400 level, with the digital asset having been rejected from this level multiple times in the past.
From this, the crypto analyst tells investors to keep an eye on the 2-week chart for confirmation. The Ethereum price would have to break out above $4,400 and then clear $4,500 with a decisive move. This means that sharp price wicks do not count. But if this resistance breakout is completed and support is confirmed, then the Ethereum price could continue to rise until $14,000.
There is also the fact that the Ethereum price is on the verge of completing another 2-month candle. The analyst points out that the price resistance for this trend is at $3,400, which is coincidentally the low for the liquidation event that occurred last Friday. Thus, it remains a decisive support point for the price.
On an important note, the analyst points out that if the Ethereum price is able to complete its 2-month candle above $4,400 by the end of October, then it also confirms that price action is positive and the price could continue to climb.
However, this means that in the event that the price fails to actually surmount $4,400 on both the 2-week and 2-month charts, then it could put the bears back in control of the price. A turn toward the negative could confirm that the decline could deepen. “Positive answers to questions one and two are a green light for a long entry. And more importantly, a cancellation of the bearish idea,” the analyst said.
Featured image created with Dall.E, chart from Tradingview.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
