Ethereum (ETH), known not only as a versatile platform but also as a dynamic asset, has been catching the attention of crypto enthusiasts. Recent developments in the Ethereum market indicate the potential formation of a “higher low” pattern, hinting at a possible reversal in its price direction. Additionally, rising trading volume adds further credibility to this bullish outlook.
In the case of Ethereum, the current testing of the 2100 resistance level is a critical juncture for the market. As indicated, in the previous months the instrument made a higher low pattern which can be seen on the monthly chart below. This could be a second wave finish and a start of a third wave upside after the bullish reversal takes shape, but it needs to be confirmed by a clear breakout above rectangle consolidation 2100 resistance. A rejection here will leave us in a painful ongoing consolidation still.
The Weekly Ethereum chart reveals the ongoing 2100 resistance test. A break above 2100 is required to confirm the immediate upside extension in the third wave continuation higher, and we are seeing a test of the consolidation rectangle which is ongoing for a year and a half. It is advisable to position yourself in just one trade direction and not to try to catch every swing. If we get a breakout this will be a perfect long trade opportunity but we need to wait for a proper price action of a break above 2100.
As the famous trader says…
“Don’t blindly follow someone, follow [the] market and try to hear what it is telling you.”
How to trade this?
Ethereum’s influence on altcoins and its role as a market leader suggest that its performance can have a ripple effect on the broader cryptocurrency space. While XRP faces resistance and Cardano constructs a foundation for a potential reversal, Ethereum’s possible positive trajectory continuation paves the way for a possible bull market in the crypto sphere.
It is a fact that a strong upside resistance for Q4 2023 is 2100 If we get a confirmed break above the 2100 we could see an extension higher to 2500 followed by 3000. Near-term, long-trade entries have a higher probability of success but for the conservative traders upon a break above 2100. Less conservative traders can open the long trade here with a bit of risk and stop the loss below 1870.