ETH price to trigger a minor rally before exploding to $1,400

(Akash Girimath – FXStreet)

– Ethereum price seems to have held the selling pressure as it attempts to bounce off $1,280.

– If the ongoing bullish momentum holds, ETH might sweep the equal highs at $1,343 before retracing to the $1,270 level.

– A daily candlestick close below $1,220 will invalidate the bullish theiss for ETH.

Ethereum price is bouncing off the immediate support level and shows signs of a quick rally. This outlook is a little risky for traders since a failure to maintain this bullish momentum could result in ETH sliding lower and targeting equal lows to the downside.

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Ethereum price is currently bouncing off the $1,280 support level after a resurgence of the bullish momentum. While the bullish scenario discussed in the previous article is still valid, investors can expect a firm bounce off the $1,280 support level that could result in a minor run-up to sweep the equal highs formed at $1,343.

This move would constitute a 5% gain and is a perfect setup for scalpers. If buyers continue to step up, Ethereum price could sweep the subsequent equal highs at $1,402, bringing the total gain up to 9.5%.

However, the ideal scenario would include a sweep of $1,343 followed by a full retracement of the move and a further correction to collect the sell-stop liquidity resting below the equal lows at $1,270. Depending on the selling pressure, if Ethereum price slides lower and tags the $1,220 level, it will trigger the triple tap scenario discussed in a previous article.

Regardless of what scenario plays out first, the upper limit of Ethereum is capped at $1,440. If ETH flips the $1,440 hurdle, it could expand higher and retest the $1,559 level.

On the other hand, if Ethereum price produces a decisive close below $1,220 and flips it into a resistance level, it will invalidate the bullish thesis. Such a move could further disrupt the bullish order flow and potentially crash ETH to the $1,200 or $1,080 support levesl.