Ethereum price has witnessed a 25% relief following the positive US CPI announcement during the second week of November. Before the move, ETH saw a penny-from-Eiffel-style decline, bringing prices to  sub-$1100. Although Bitcoin shows optimistic signals, Ethereum has subtle cues suggesting bullish countertrend traders should apply more cautionary measures.

Ethereum price auctions at $1,276 as the market consolidates just below the recently broken support zone established between September and October. The bulls produced a daily closing candle back into the broken support zone, which is a positive note. A Fibonacci retracement tool surrounding the strong part of this week's decline suggests the bulls have already rallied 50%. Therefore the ETH price could be capped at exceeding higher gains. The next target would be the 61.8% level at $1,362. Traders should expect a profit-taking reaction at the Fib level if ETH and the level are reacquainted.

Still, a 2.5-1 reward-to-risk ratio can be achieved by aiming for the 61.8% Fib level. The trade idea would require the current consolidation to endure bearish pressure without breaching the daily low at $1,201. If the invalidation level is breached, a retest of the recent lows could occur near $1,080. Such a move would result in a 15% decline from the current Ethereum price.

A flip of either range limits will determine the overall direction for Ethereum price. An ideal scenario would include ETH sweeping the equal lows formed at $998 followed by a 40% upswing to the $1,400 hurdle.

Supporting this massively bullish outlook for Ethereum price is the Supply Distribution metric for whales holding between 100 to 10,000 ETH. This category of investors timed the market perfectly as their number dwindled from 46,664 to 45,819 between September 14 and October 2. During the same period, ETH dropped 23%.

Massively Bullish outlook for ETHUSD

Nov 14 2022

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