Ethereum price sees bulls defending $3,000 before jumping 13%

Ethereum (ETH) price saw slippage into the US close as some disappointing earnings news put risk trades on the back foot. Although bears tried to push ETH price further below $3,000, they failed as in the European session, bulls are back on track with price action first pushing back above $3,000, helped by a bounce off a green ascending trend line, and now with three confirmed tests. Expect to see a further squeeze to the upside with higher lows and bears being pushed against $3,163.35 in a bullish triangle.

ETH price sees bulls defending the bullish triangle with $3,400 as a prospect

Ethereum price slipped and rolled over in late-night trading and saw a continuation in the handover to the ASIA PAC session this morning. This is a pretty standard pattern and issues with earning seasons as often news after the closing bells get traded in thin liquidity, resulting in exaggerated moves. This is similar to the Ethereum price reaction yesterday, even where the price dropped 7% after failing to close above $3,163.35.

ETH price is set to rally back up again after bulls used the green ascending trend line to bounce off of, and following a third confirmed test, that trend line has become even more critical. With the cap at $3,163.35, the ETH price is moving in a bullish triangle that looks set for a breakout pretty soon given the top level has been tested three times in the past few days this week already. Now it seems bears’ defence of that level is getting weaker, and a short squeeze could happen at any moment, depending on the trigger in the market, swinging ETH price first through $3,163.35 and next $3,391.52, amounting to a 13% gain.

ETH/USD  4H-chart

As equity futures are already in the red, should those losses be eked out even further throughout the day, the risk is that dollar strength returns. In the equation with cryptocurrencies, that denominator will start to weigh on ETH price and pull it to the downside. In case the green ascending trendline breaks, expect to see a return to the low of this week near $2,880.