On Nov. 25, Ethereum (CRYPTO: ETH) continued in its uptrend Benzinga called out on Nov. 23 and made a high of $4,555.11, surpassing the previous Nov. 20 high of $4,439.96.
The crypto then printed a bearish double top pattern at the level on Nov. 26 and fell to retest support at the $3,950 level.
The cryptocurrency market has been in a weeks-long period of consolidation after both Bitcoin (CRYPTO: BTC) and Ethereum made new all-time highs of $69,000 and $4,867.81, respectively, on Nov. 10. The pullback put a snag in some investor’s beliefs Bitcoin could rally toward the $100,000 mark by the end of 2021.
In December 2020, a leaked document showed one Citi bank senior analyst predicted Bitcoin could rise as high as $318,000 by December of this year, a price that even for the most bullish investors seems unbelievable now.
As recently as Oct. 21, Nick Spanos, creator of the Bitcoin Center NYC and co-founder of Zap.org, gave Ethereum a price target of between $10,000 to $12,000 by the end of 2021, which seems impossible with only a little over a month left in the year.
Ethereum could rally to a new all-time high before the year is done, however, if the crypto can reverse course into another uptrend and pop over a resistance level at $4,617.02.
See Also: How to Buy Ethereum Classic
The Ethereum Chart: On Nov. 16, Ethereum broke down bearishly from a rising channel in which the crypto had been trading since Sept. 21. The breakdown occurred on higher-than-average daily trading volume, which indicated the pattern had been recognized, and consequently Ethereum retraced more than 13% lower before hitting a bottom near the $4,170 level Nov. 18.
Ethereum has since tested the level as support on four separate occasions, which has created a bullish quadruple bottom pattern at the level. Sunday and Monday’s bullish price action may be the confirmation the pattern was recognized. Over the course of the two 24-hour trading sessions, Ethereum has shot up over 11% from the support level.
The crypto has failed to confirm either an uptrend or a downtrend since printing the double top pattern, but if Ethereum can surpass the Nov. 25 and Nov. 26 high-of-day prices, it will be the first step in forming a possible uptrend.
Bullish traders should remember if the crypto is able to print a higher high, it will also need to print a higher low to confirm the trend.
Ethereum is trading above the eight-day and 21-day exponential moving averages (EMAs), but the eight-day EMA is trending below the 21-day. If Ethereum is able to trade high over the coming days, the eight-day EMA will cross back above the 21-day, which would be bullish. Ethereum is trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.
- Bulls want to see big bullish volume come in and push Ethereum up to print a higher high and then for continued momentum to pop the crypto up over the higher resistance, which would put Ethereum in reach of it previous all-time high.
- Above the level, there is no further resistance in the form of price history.
- Bears want to see Monday’s bullish price action form a higher low and then for big bearish volume to come in and drop the crypto down below the Nov. 26 low of $3,915. Ethereum has support near $4,384 and $4,168.
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