Ethereum Price Prediction: Can ETH pullback to $1400?

source: shuttershock

In Short

  • Ethereum price lost 36% of its market value in November.
  • ETH has hurdled back above a previous level of support.
  • A breach below $1,211 would make void the bullish potential.

Ethereum price could be setting up for a move to replenish lost funds into the hands of investors. With market sentiment in extreme fear, a contrarian countertrend bounce is still a possible outcome. 

Ethereum price should be watched closely

Ethereum price rose by 19% during the first week of December following November’s 36% downtrend. Now, as the ETH price hovers in above the 8-day exponential moving and 21-day simple moving average, a possibility to rally towards the November high stands a fair chance of occurring.

Ethereum price currently auctions at $1,276. The bulls successfully breached through a broken support zone with a slight uptick in transactions on the volume indicator. A Fibonacci retracement tool covering the entirety of November’s downtrend shows the same as a 38.2% retracement level. 

Source: tradingview
ETH USDT 1-day chart

If the market is genuinely bullish, a breach of $1,300 should be the catalyst for an uptrend move targeting 50% and 61.8% Fib levels. The uptrend would have the potential for up to a 13% increase in market value targeting the “Golden Pocket” 61.8% Fib zone at $1,416. 

Invalidation of the bullish outlook could arise if the bears break the bullish engulfing candle that pierced the 38.2% Fib level. A plummet below $1,211 could include an additional decline targeting the November low at $1,075. The Ethereum price would fall by 14% if the bearish scenario played out

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