Ethereum has been experiencing a downward trend in recent weeks, with its price dropping below $2,000. This decline led to a low of $1,750 on March 11, the lowest point since November 2023. Despite this significant drop, there are signs that Ethereum may be on the brink of a bullish turnaround as it retests a crucial resistance level on the 4-hour chart.
The price action of Ethereum has been dominated by downtrends, causing many investors to exit their positions since the beginning of March. Ethereum finally broke below $2,000 on March 10 and has been trading below this level for the past week. However, after reaching a low of $1,750, Ethereum has shown signs of recovery and has rebounded to around $1,900. This recovery has brought the cryptocurrency back to a downward-sloping resistance trendline, a level that has been a barrier to upward movements during the recent downtrend.
The test of this resistance level presents a potential breakout scenario, with the possibility of bullish momentum flowing back into Ethereum. An analyst on TradingView highlighted this setup and suggested that a breakout above the resistance trendline could lead to a significant rally above $2,000.
Despite the prevailing bearish sentiment in the crypto market, a TradingView analyst has identified a bullish trade setup on Ethereum’s 4-hour candlestick chart. This indicates that there is still optimism among some analysts and investors who believe that Ethereum could regain its bullish momentum.
According to the analysis, a confirmed breakout above $1,885 could serve as an ideal entry point, with a potential price target of $2,596 if Ethereum breaks above the resistance trendline. The analysis also recommends placing a stop loss at $1,700 to manage risk in case the price is rejected at the resistance level.
Currently, Ethereum is trading at $1,895, with the price hovering around the resistance trendline. There is a possibility of another push upward in the next 48 hours, especially if there is a surge in volume to confirm the breakout with momentum.
In conclusion, Ethereum’s price action is closely monitored, with the potential for a bullish turnaround if it breaks above the key resistance level. Traders and investors are advised to watch for further price movements and volume confirmation to gauge the market sentiment accurately.