- Ethereum offered bulls a solid entry point this week with the monthly Pivot Point and the 55-week SMA.
- ETH price was capped to the upside around the monthly R1 resistance and a medium-term downtrend line.
- Bulls are building momentum for bullish breakout with possible new all-time highs next week.
Ethereum price saw bulls flocking to $3,250 this week around the 55-week simple moving average and monthly Pivot Point as favorable tailwinds loomed over cryptocurrencies. The ETH price action has broken above some significant resistance levels for the second week in a row and is building momentum for another move higher, with a new all-time high for Ethereum price on the horizon.
ETH targets $4,646 if bulls push Ethereum above the downtrend line.
Ethereum’s price action has added a few more buyers to the uptrend that began last week. Both the 55-week SMA and the monthly Pivot Point offered bulls a good entry point and hold firm for solid gains. The price action then faded late in the week due to profit-taking near the monthly R1 resistance at $3,846. But the bullish rally has more room to run.
The pullback is viewed as a further discount to the ETH price action as buyers defend $3,391 and hope to close the week above $3,687. From there, the downtrend line that has been coming since May will be tested, as it was in August and September. In the case of a break above this line, buyers would be expected to jump into the ETH price action.
In a favorable environment, Ethereum price action will consolidate against the downtrend line (red) and break above it. This will add fresh buying volume to the uptrend and attempt to at least retest $4,646. A new all-time high would be a critical point that would push Ethereum even higher, with Bitcoin reaching $60,000.
In contrast, if the tailwinds fade and turn into headwinds, ETH price action could begin to decline. Bulls will begin to pull back and expect more lucrative discounts, as they consider the ETH price to be overvalued. Therefore, you can expect the bearish to go for the kill quickly and drive ETH towards $2,695. If the bearish can break below the 200-week SMA, it could mean the start of a downtrend towards $2,000.