Ethereum struggles but bulls remain in control, ETH prepped for 50% spike

Ethereum price continues to battle below the Cloud and has displayed several primary bearish breakout trade setups – but bears are unwilling or unable to push ETH lower. However, several bear traps have been formed and could be the primer necessary to launch Ethereum higher.

Ethereum price shows bullish continuation pattern and trend continuity ahead

Ethereum price remains inside a large and broad bullish continuation pattern known as a bull flag (green channel). December 2021 showed sellers made multiple attempts to close Ethereum below the bull flag, generating some fear among bulls. However, buyers were able to return Ethereum into the bull flag.

Near-term resistance for Ethereum price is the Tenkan-Sen at $3,850. Above that, a confluence zone at $4,000 exists with the Kijun-Sen and 2021 Volume Point Of Control. Therefore, for Ethereum to resume the uptrend that halted in the middle of November 2021, Ethereum needs to close at or slightly above $4,200.

A close at $4,200 would position the daily candlestick above the top of the Cloud (Senkou Span B) while also positioning the Chikou Span above the candlesticks and in open space – a condition where the Chikou Span won’t intercept the body of any candlesticks over the next five to ten periods. More conservative traders may wait to see what happens when Ethereum price returns to $4,500.

ETH/USDT Daily Ichimoku Chart

$4,500 is a solid psychological number, but it is also where the 61.8% Fibonacci extension exists and is just above the last significant swing high from December 9 at $4,450. An entry at or above $4,500 would fulfill the basic entry rules on the breakout above a bull flag.

Any long bias for Ethereum price would probably be invalidated if ETH drops below the bull flag and has a daily close below $3,600. That would likely trigger a fast drive south towards the $3,200 value area.