Ethereum price shows clear signs of a bearish regime after it collapsed from a local top formation on April 16. This descent seems to have hit a blockade, which opens ETH up for a minor pullback.

Ethereum price set up a local top at $2,147 on April 16 after the 52% rally began on March 11. As investors continued to book profits, ETH kept sliding lower. So far, ETH has shed nearly 13% as it hovers around the $1,843 support floor.

Due to the low volatility conditions of the weekend and the nature of the aforementioned support level, a recovery rally might be possible for Ethereum price.

Investors should expect a temporary bounce in Ethereum price that will allow sidelined bears another chance to short ETH at a higher level. The recovery rally could propel the smart control token to $2,050, which opens up the path for traders to open a long scalp position before getting a chance to open a swing short position.

After retesting the $2,050 barrier, investors can expect Ethereum price to continue its descent ad tag the bullish breaker, extending from $1,744 to $1,649.

On the other hand, if Ethereum price continues to climb higher during its recovery phase and produces a higher high above the current local top at $2,147, it will invalidate the bearish thesis. Such a development could see ETH revisit the $2,200 and higher levels.

ETH/USD bearish until touchdown at DEMA200

Apr 22 2023