(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.
Ethereum price provides scalpers an opportunity
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.