Despite the storm and the general bearishness of the general crypto market, the price action of Ethereum appears to have a few positive signs for its investors and traders.
Over the last day, after hitting support around $1267, the price of Ethereum has started to trend higher and is now testing resistance around $1353.
This price level is above the $1310 level and the 100-period simple moving average, meaning that there is a likelihood of the price of Ethereum trending upwards this time and breaking resistance to reclaim price levels above the $1,400 mark.
So far, the price of Ethereum could gain sufficient bullish momentum if it maintains a clear trend above the $1350 mark.
Ethereum's bulls have managed to hold the price above the $1230 support since mid-September. There was even a momentary price pump in late September when the price of ETH rallied upwards by 3% to the $1401 mark.
From a medium-term perspective, the price of Ethereum appears to be trading inside an ascending channel and has tested the lower support of this channel a total of three times over the last two weeks.
The price action on ETH has broken through the 0.5 level of the Fibonacci level at around $1338.
The next major support the price of Ethereum has to worry about is the 0.236 Fibonacci level around the $1400 mark, which also coincides with the upper resistance of its ascending channel.
A break above this level may provide the upward momentum the ETH bulls need to push back against the bears and see a price rally.
This price rally may push the price first to the $1700 level ETH stood at before the post-merge price decline and then to the $2000 target, which most traders and investors predicted back when speculation about the merge was still fresh hot.
If the price action on Ethereum fails to break above the $1366 resistance, a sharp price decline again, straight down to the $1320 level and possibly to the $1274 level.
Any more price declines beyond this point could even send the price of Ethereum straight down to the $1200 level or lower, depending on the price fundamentals when this happens and how active the bears are against the bulls at the time.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)