Ethereum price is 10% shy from entering a new bull run
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Ethereum price is still testing January’s resistance zone as support.
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ETH price is consolidating above a parallel channel’s median line.
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A close below $2,300 will invalidate this bullish thesis.
Ethereum price is currently trading at $2,560. Despite the pessimism clouding over the smart contract giant lately, the 2-day chart still hints at a bullish scenario in the future.
Ethereum price is flipping previous resistance as support
Ethereum price should spark optimism amongst investors, as the bulls are currently supporting it above January’s last resistance zone. Secondly, ETH price is hovering 10% above a parallel trend channel’s median line. Consolidation above the median line usually could be a sign for riskier traders who like to enter early and capture more profit from a move.
Conservative traders may want to wait for ETH price to rise an additional 10% and break through the trendline before opening a position. If bulls can manage to produce a breakout on the 2-day trend line, a massive rally could occur back toward all-time high at $4,800, which is 80% away from the current price.
ETHUSDT 2-day chart
The best invalidation when trading a trend channel is a failure in price below the median line. Under no circumstance should ETH price trade 10% below at $2,300. If bears manage to suppress ETH price into the $2,300 low, the bull run won’t likely commence. Bears will be aiming for liquidity under $2,100 and $1,700, up to 30% below current price action.
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FXStreet Team
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