Ethereum price tests key resistance, threatening to break out
- Ethereum price is consolidating below the descending weekly trending line
- ETH printed a bullish engulfing candle last week
- A failure to break key resistance will invalidate the bullish thesis
Ethereum price displays make it or break it like behavior as the bulls push it into critical resistance. Still, there are several factors to consider.
Ethereum price edges near a breakout
Ethereum price recently saw a high at $3,075 before coming back to consolidate at a current market value of $3,000. Bulls managed to tap liquidity above February's swing high at $3,041, which now has investors wondering what will be the next move. ETH price is coiling right below the weekly trend line, which is super bullish. However, Ethereum price has failed to establish a close higher than the previous swing high on the 8-hour chart, which leaves reasonable doubt on the bull's strength.
The second-largest crypto by market cap may have already triggered early buyers to enter the market. Safer investors may want to wait for a more definitive indicator that the uptrend will continue. A break and retest strategy could apply for Ethereum price at the current time. Jumping down to smaller time frames would be riskier but could pay off if ETH price continued charging higher towards the swing highs at $3,325.
ETH/USDT 1-Week Chart
Still, there is a double scenario for Ethereum price. The bulls could fail to break out past the $3,100 resistance. If this were to happen, ETH price could fall an additional 17% into last week's open at $2,500.
Author
FXStreet Team
FXStreet
