Ethereum Price Prediction – Bears might have a problem on their hands

Ethereum Price Prediction Bears might have a problem on their hands

In Short

  • Ethereum price breached the September lows and then rallied 10% higher.
  • The Relative Strength Index has space to climb and does not show any divergences within the countertrend rally.
  • Invalidation of the countertrend rally depends on the $1,255 level holding as support.

Ethereum price could continue rising higher as retail bears have recently been lured  into a smart money trap

Ethereum price traps retail bears 

Ethereum price is peculiar as a 10% rally occurred hours after the bears breached the September lows. The decentralized smart contract token dropped penny-from-Eiffel style into the previous month’s bottom after the US CPI data was released. The sharp move back up was a clear bear trap in retrospect, and the trapped bears will likely play a significant role on ETH’s future price action.

Ethereum price auctions at $1,300 as the bulls are testing the. The 8-day exponential moving average as support after being rejected 21-day simple moving average. The Relative Strength Index still has space to rise and is now hovering above justifiable bullish-entry territory. Furthermore, there haven’t been any recent divergences suggesting the countertrend rallies’ ingenuity. In the coming days, bears clinging to their CPI-induced shorts may face a substantial challenge.

ETH USDT 12-Hour Chart
ETH USDT 12-Hour Chart

If the technicals are correct, there is a strong probability of a rally to $1,370. The countertrend rally should continue as long as the $1,255 liquidity level holds. If the bears do manage to breach $1,255, the uptrend idea would be void. The bears could continue treading south, with a high chance of sweeping the summertime lows at $880. Such a move would result in a 32% decline from the current Ethereum price. 

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Tony Montpeirous
Tony Montpeirous
Tony Monpeirous is a full time crypto trader and chart analyst at Coinmash and FXStreet. His style of trading includes, Elliot Wave, Auction Market Theory, and Classic Price Action techniques. When he is not on the screens, Tony enjoys music, cooking, and learning new skills.