(Akash Girimath – FXStreet)
– Ethereum price has been stuck between the $1,423 and $1,282 barriers for over two weeks.
– A breakout from this consolidation could result in ETH revisiting the $1,571 and $1,730 hurdles.
– A daily candlestick close below $1,191 will invalidate the bullish thesis for the smart contract token.
Ethereum price shows a lack of directional bias as it consolidates in a tight range. This development could change quickly as Bitcoin bulls seem to be back and could propel ETH out of the ongoing range tightening.
Ethereum price needs to achieve critical mass
Ethereum price has been stuck close to the $1,282 support level for more than two weeks. On October 2, ETH managed to build up momentum and rallied 5.5% and is currently hovering around $1,320.
In addition to the $1,282 level, Ethereum price has been stuck under a ceiling of $1,423. These two barriers have sapped out the volatility and are happening due to the lack of interest in the Bitcoin price. However, things are likely to change in the last quarter of 2022, which has historically provided positive returns.
For ETH, a flip of the $1,423 hurdle into a support floor is the first sign of bullish resurgence. Beyond this level, Ethereum price will climb higher to revisit two crucial resistance levels – $1,571 and $1,730.
A move to $1,730 would constitute a 31% ascent from the current position and is likely where the upside is capped for Ethereum price in the foreseeable future or at least until Bitcoin price continues to rally.
Regardless of Bitcoin’s lack of directional bias, Ethereum price could see a steady surge in momentum that could kick-start the rally. However, this is unlikely due to the bearish retail mindset.
On the other hand, if Ethereum price produces a daily candlestick close below $1,191, it will invalidate the bullish thesis for the smart contract token. This development could see ETH retest the $1,080 support floor.