The price of Ethereum (ETH) can detach itself from the low of Bitcoin (BTC) and print its own path of high.
Thus, according to trader analyst Jonathan Morgan points out, the bulls set several traps for bears and may have laid the necessary foundation to launch Ethereum to new records.
Therefore, the analyst points out that the price of Ethereum remains within a large and broad bull continuation pattern known as the bullish flag.
Thus, he said, December 2021 showed that sellers made several attempts to close Ethereum below the bulls' banner, creating some fear among ETH optimists.
“However, buyers were able to return the Ethereum to the bull flag. Short-term resistance for the price of Ethereum is Tenkan-Sen at $3,850. Above that, there is a $4,000 confluence zone with the Kijun-Sen and the 2021 Volume Control Point″, he said,
So, he says, forEthereum to resume the uptrend that stopped in mid-November 2021, Ethereum needs to close at $4,200 or slightly above.
So he points out that a $4,200 close would place the daily chandelier above the top of the cloud (Senkou Span B), while placing the Chikou Span above the candlesticks and in open space.
“More conservative traders can wait to see what happens when the price of Ethereum returns to $4,500,” he said.
So he points out that $4,500 is a solid psychological number, but it's also where the 61.8% Fibonacci extension exists and is just above the last significant December 9th high of $4,450.
“An entry of $4,500 or more would meet the basic entry rules in the breakout above a bull flag,” he says.
But, he also points out that any long trend for the price ofEthereum would likely be invalidated if ETH falls below the high flag and has a daily close below $3,600.
“That would likely trigger a quick move down towards the $3,200 value area,” he concludes.
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