• Ethereum price is undergoing a retracement after rallying 22% in under five days.
  • This correction will provide interested investors the last opportunity before ETH rallies 33% to $5,662.
  • A breakdown of the range low at $3,909 will invalidate this bullish thesis.

Ethereum price rallied exponentially for a few days and came close to retesting its all-time high. This run-up is a perfect example of a liquidity run and is in preparation for the next leg-up that will likely set up a new high.

Ethereum price eyes record levels

Ethereum price collected liquidity resting below the November 18 swing low at $3,960 on November 25, which marked the start of an upswing. Since this point, ETH has climbed 22%, and in doing so, the altcoin has managed to collect liquidity resting above the November 16 swing high at $4,771.

Therefore, investors need to watch Ethereum price for an explosive move that sets up a new all-time high. After the recent run-up, ETH has declined 5% and is likely to continue until it dips into the buy zone, extending from $4,093 to $4,242.

This move will trigger a run-up that will aim to retest the current record high at $4,878 and hope to set up a new one at the $5,000 psychological level. If the bullish momentum persists, Ethereum price could extend and tag $5,340.

In a highly bullish case, however, investors could expect Ethereum price to set up a swing high at $5,662. This move would constitute a 33% ascent from $4,242.

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

While the above narrative is rather bullish, it is contingent on the fact that the Ethereum price does not dip below the buy zone, extending from $4,093 to $4242. Shattering this area will likely lead to a retest of the range low at $3,909.

If ETH produces a daily close below this level, it will invalidate the bullish thesis. In this situation, Ethereum price will eye the October 22 and October 28 swing low at $3,889 and the liquidity resting below it.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Cardano whales enter buying spree before the Vasil hard fork

Cardano whales enter buying spree before the Vasil hard fork

Cardano price is showing an interesting set up as it struggles to make a move above a crucial support level. A rejection here could lead to a buying opportunity for patient investors before ADA explodes.

More Cardano News

Why Dogecoin enters 50% bull rally despite founder’s remarks on Elon Musk

Why Dogecoin enters 50% bull rally despite founder’s remarks on Elon Musk

Dogecoin price has been coiling up like a spring for roughly ten days, indicating that a massive move is about to occur. The congestion will likely lead to a bullish move for DOGE that is brimming with volatility.

More Dogecoin News

SafeMoon price readies for a 40% breakout

SafeMoon price readies for a 40% breakout

A brief technical and on-chain analysis on SafeMoon price. Here, FXStreet's analysts evaluate where SFM could be heading next.

More SafeMoon News

Why a 20% rally for Crypto.com price makes sense now

Why a 20% rally for Crypto.com price makes sense now

Crypto.com price is on the verge of flipping a crucial resistance barrier into a support level. Assuming this conversion occurs, CRO will be primed for a quick expansion to the next hurdle.

More Crypto.com News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP