- Ethereum price experienced a massive run-up on October 1, pushing past the $3,202 resistance level.
- The buyers need to keep ETH above $3,202 to have any chances of heading higher.
- A breakdown below $3,000 will sow the seeds of doubt and potentially invalidate the bullish thesis.
Ethereum price has been traversing a bullish pattern since September 1 and broke out precisely a month later. The upthrust was impressive since it slashed through a crucial resistance level, but it needs to hold above it for a continued run-up.
Ethereum price faces a tough call
Ethereum price set up three distinctive lower highs and lower lows since September 1. Connecting these swing points using trend lines reveals the formation of descending parallel channel. After ten days of consolidation around the $3,000 psychological level, ETH broke out on September 1 as it rallied 12%, cutting through the formidable $3,200 resistance level.
If Ethereum price manages to hold above this barrier, there is a chance that a potential bounce could trigger the next leg of the uptrend.
In such a case, investors can expect ETH to make a run at the $3,619 resistance level, and the buy stop liquidity resiting above it.
This move from Ethereum price will set a higher high, hinting at a shift in favor toward the bulls. Moreover, this newfound optimism could cause FOMO, further pushing Ether to retest the $4,000 psychological level.
ETH/USDT 12-hour chart
On the other hand, if Ethereum price fails to hold above $3,202, it will indicate the short-term investors are booking profits. In this case, ETH will head toward $3,000, where the buyers make another comeback.
However, a failure to hold above $3,000 will invalidate the bullish thesis and knock Ethereum price to venture lower.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.