Ethereum price looks ready for a minor upswing as it bounces off a crucial support area. This upswing is likely to propel ETH up to a recent swing high. If the asset fails to produce a higher high, investors can expect a retracement to ensue.Ethereum price has recently produced a higher low at $4,022 as it bounced off the $3,958 to $4,094 demand zone. The resulting upswing is grappling with the 50% retracement level at $4,352. If the buying pressure increases, investors can expect ETH to make a run toward the 70.5% Fibonacci retracement level at $4,524 or extend to the next barrier at $4,596. Considering the bearish outlook of big crypto and major altcoins, investors can expect Ethereum price to follow the same trend and drop down to the demand zone mentioned above.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

A decisive close below $3,958 will confirm the start of a downswing. In this scenario, ETH will aim to collect the liquidity resting below $3,911, $3,744 and $3,413. Assuming Ethereum price retests $3,744, it would constitute a 25% downswing from the 70.5% Fibonacci retracement level at $4,524. Although things are looking ready for a further downswing, a special-case scenario could see ETH wick past the $4,022 swing higher to collect ‘buy stop’ liquidity. This move does not invalidate the bearish thesis. However, a daily close above $4,773 will invalidate the short-term bearish thesis.

This development could see Ethereum price rally past its all-time high at $    4,875 and toward the $5,000 psychological level.

Are We Looking For A Deeper Correction ?

Nov 24 2021