Ethereum price shows promising bounce after sell-off but ETH bulls will struggle at $4,300

Ethereum price quickly recovered from its swing low at $3,838, registering a 5% gain above the psychological level of $4,000 on December 11. While ETH may currently favor the bulls, the token may face difficulties targeting higher levels as heavy resistance emerges at $4,300. 

Ethereum price still slightly indecisive

Ethereum price has printed a symmetrical triangle pattern on the 12-hour chart, suggesting indecision in the market. ETH swiftly bounced from the lower boundary of the governing technical pattern at $3,838, as it attempted to reverse the period of underperformance.

While the quick recovery appears to be a promising move to the upside, representing a shift in momentum for Ethereum price; ETH could face a stiff hurdle ahead that may hinder its rally. 

The first obstacle for Ethereum price is at the 50% retracement level at $4,139. The following resistance appears to be a tough challenge for ETH to tackle at $4,289, where the 21 twelve-hour, 50 twelve-hour Simple Moving Averages (SMAs) and 61.8% Fibonacci retracement levels intersect.

ETH/USDT 12-hour chart

IntotheBlock’s In/Out of Money Around Price (IOMAP) model suggests that the largest cluster of underwater investors purchased 12.15 million ETH at an average price of $4,336, forming the toughest hurdle for Ethereum price in the near term.

ETH IOMAP

Only if Ethereum price manages to overcome the sturdy hurdle at $4,289 would see ETH target the 100 twelve-hour SMA at $4,348 next. 

A surge in buy orders may propel the token higher to reach the upper boundary of the triangle at $4,387. Investors should note that a slice above the aforementioned resistance would open up the possibility of a 26% surge toward $5,416, the bullish target given by the governing technical pattern.

However, if selling pressure increases, Ethereum price may discover immediate support at the 38.2% Fibonacci retracement level at $3,989, then at the 200 twelve-hour SMA at $3,890. The lower boundary of the triangle will also act as a reliable foothold for ETH at $3,854.