Ethereum price has pulled off an impressive 12% rally this week as sidelined bulls immediately jumped in a sub-$1,100 price offering earlier in the week. Like BTC, the ETH price has breached the 8-day exponential moving average but remains confined under the previously broken support zone near $1,200.

Ethereum price currently auctions at $1,199. Several bearish divergences have been established on smaller time frames within the recovery rally on the Relative Strength Index. The indicator may be suggesting that the uptrend move will soon be coming to an end. The Volume Profile indicator shows a lack of confidence from all market participants as very little interest is shown compared to the previous sell-off to $1,080 on November 9.

Traders should apply extra caution as the market structure has not yet deemed the recovery rally wave of a larger countertrend rally. Therefore ETH could fall back into sub $1,100 territory. Targets would lie at $1,080 and potentially $1,000.

This outlook might continue as the weekend approaches, but Ethereum price traders should await a flip of the $1,187 hurdle into a support floor to make a move. If successful, ETH can make its way to equal highs formed at $1,290 and $1,350.

Invalidation of the bearish thesis is a breach above the market structure's swing high at $1,292. If the bulls breach the barrier, an additional rally targeting $1,400 liquidity zone would be a fair target to aim for. Such a move would result in a 16% increase from the current Ethereum price.

$1400 needs to be broken for further upside

Nov 27 2022