Ethereum Price Poised for Blastoff? 10% Breakout in Sight, But ETH Uptrend Faces a Crucial Test
Traders backed widespread recoveries across the market after many cryptocurrencies had snapped out of their uptrends on Friday. The cooldown continued during the weekend, with Ethereum price sweeping through lower support areas at $2,115.
Meanwhile, growing optimism ahead of the likely approval of spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) in January is keeping the crypto market not only buoyant but also bullish.
The largest smart contracts token, ETH regained momentum on Monday and was trading 4% higher on Tuesday at $2,230. Bitcoin price is equally strong, up 4.3% to $42,940 while Binance Coin (BNB), the token native to the largest crypto exchange traded 6.6% higher at $250.
Read also: Crypto Price Prediction For December 19: WOO, ICP, ADA
Ethereum Price Prediction: ETH Flaunts Potential Wedge Breakout
The rejection from the new 2023 high at $2,400 has seen Ethereum consolidate, creating a series of lower highs and lower lows. In other words, the token has printed a falling wedge pattern on the four-hour chart, awaiting confirmation before breaking out.
The falling wedge, in this case, is a continuation pattern, which bulls can tap to resume the uptrend targeting highs above $3,000. However, its formation alone is not enough, which means Ether price must rise above the upper falling trendline to validate the breakout.
If the immediate support at $2,230, provided by the 50 Exponential Moving Average (EMA) (in red) is respected, Ethereum price would have a higher probability of breaking past the wedge pattern and rising 10% to $2,500.
If losses intensify due to more profit-taking among investors, Ethereum could tap the 20 EMA (in blue) for support to ensure that chances of the wedge pattern breakout remain high, especially with the Moving Average Convergence Divergence (MACD) indicator sending a buy signal.
Following the wedge pattern breakout, key milestones to look forward to start with defeating resistance at $2,260, $2,300, and $2,360. Further gains above $2,400 would call on more traders to enter long positions in Ethereum and provide additional tail force to propel the token toward $3,000.
Since the Money Flow Index (MFI) is trending north above the midline (50), it can be deduced that there’s more bullish pressure than selling pressure. However, the situation could change, especially if the two higher support areas at the 20 EMA and 50 EMA weaken.
If push comes to shove, some traders may decide to close their positions based on their risk tolerance, and wait to buy ETH again when it finally taps a solid support, for instance, the 200 EMA (purple) at $42,150.
Related Articles
- Top Altcoins To Buy On December 19: Bonk (BONK), Celestia (TIA), Internet Computer (ICP)
- Solana Price Prediction: 3 Catalysts Propelling SOL Towards $100
- Terra Luna Classic Price Prediction: 300% Pump, 40% Dump, Is the Worst Yet to Come?
- Trump-Backed World Liberty (WLFI) Plans RWA Tokenization Paired with USD1 Stablecoin
- Stripe Eyes U.S. Banking Charter, Pioneers One-Click Stablecoin Issuance for Firms
- Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder
- BREAKING: Nasdaq Files with US SEC to List BlackRock Bitcoin Premium Income ETF
- Mr Beast, Whales Buy ASTER Token Amid 20% Crash, What’s Next?
- XRP Price Outlook After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
- Ethereum Price Eyes $8,600 As Institutions And Whales Double Down
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
