Ethereum price set to recover as ETH bulls return

Ethereum (ETH) price underwent a  bearish breakout from a pennant pattern last week. Bulls were  picking up ETH coins below $3,900, and with European equities firmly in the green this morning, expect some risk-on sentiment to set the tone in cryptocurrencies in the coming days. For that reason, bulls have found they have the trend on their side and look set to push price action from $4,000 back to $4,646 in just a couple of days.

Ethereum price could see bulls pushing price back up towards $4,646

Ethereum price sees bears trying their last attempt to push price to the downside but looking to fail as they face headwinds from European equities shooting higher this morning. This element is a tailwind which could see ETH bulls regaining the advantage above the monthly S1 support level at $4,000.A daily close above $4,060 would see more buying volume coming in from investors, and as long as current tailwinds remain, expect  bulls to squeeze bears out of their positions, and continue the recovery.

ETH price will likely see some nervousness around $4,465 and the monthly pivot, which will be difficult to get through as it represents a historical level, is where a monthly pivot is located and a triple top from the beginning of December. As long as tailwinds persist, expect bulls to find enough fresh impetus to push the price above, and reach that $4,646 level.

ETH/USD daily chart

With many central bank meetings scheduled for this week – for example, the US Federal Reserve and the European Central Bank – expect markets to be susceptible to any hawkish tones or hints to further monetary policy tightening to come for 2022. That could spell fear in the market and see riskier assets like equities and cryptocurrencies selling off, which would see a sharp correction in Ethereum price action, breaking below $3,900 and continuing its nosedive towards $3,687 and $3,391.