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Ethereum Retests Critical Resistance After Rebound
Ethereum’s price action has been full of downtrends and many investors exiting their positions since the beginning of March. As such, Ethereum broke finally below $2,000 on March 10 after support failed to hold, and has spend the past week trading below this level.
Although after sinking to $1,750, Ethereum has shown signs of recovery and has now rebounded to around $1,900. This little price action of recovery has brought the cryptocurrency back to a downward-sloping resistance trendline, a level that has acted as a barrier to brief upward movements of accumulations during the recent downtrend.
Analyst Sets Bullish Price Targets For ETH
Despite the prevailing bearish sentiment that continues to weigh heavily on the broader crypto market, a TradingView analyst has identified a bullish trade setup on Ethereum’s 4-hour candlestick chart. This suggests that despite the recent decline, there remains a degree of optimism among some analysts and investors who believe Ethereum could soon regain its bullish footing.
According to the analysis, a confirmed breakout above $1,885 could serve as an ideal entry point. At the time of writing, Ethereum is yet to break above the downward sloping resistance trendline, as the breakout point is currently set just below $2,000. If Ethereum were to eventually break above the resistance, the analyst noted a probable price target of $2,596.
On the flip side, the analysis advises placing a stop loss at $1,700, meaning the setup is structured to manage risk while aiming for substantial gains. This is in case if the bearish momentum is too great to be overcome, and the Ethereum price gets rejected again at the resistance trendline. Given the high-risk reward ratio, the analyst advised watching for a surge in volume, which would provide confirmation that Ethereum is breaking out with momentum.
Conclusion
In conclusion, Ethereum’s price action has been full of downtrends and many investors exiting their positions since the beginning of March. However, after sinking to $1,750, Ethereum has shown signs of recovery and has now rebounded to around $1,900. This little price action of recovery has brought the cryptocurrency back to a downward-sloping resistance trendline, a level that has acted as a barrier to brief upward movements of accumulations during the recent downtrend.
FAQs
What is the current price of Ethereum?
Ethereum is currently trading at $1,895.
What is the significance of the $1,885 level in Ethereum’s price action?
The $1,885 level is a key resistance level that, if broken, could signal a bullish breakout in Ethereum’s price action.
What is the target price for Ethereum if the $1,885 level is broken?
The target price for Ethereum if the $1,885 level is broken is $2,596.
What is the stop loss point for this trade setup?
The stop loss point for this trade setup is $1,700.
What is the risk-reward ratio for this trade setup?
The risk-reward ratio for this trade setup is high, with a potential reward of $796 and a potential risk of $700.
