Ethereum Ready for Big Move? $1250 Resistance Could Pave the Way for $1400
• Ethereum’s price has recently been oscillating in a tight range as the markets were heading into new year holidays.
• Currently, Ethereum resides in a critical area where a decisive move may be on the horizon.
• A potential bullish breakout would pave the way for a rise toward the 200-day moving average, around a psychologically significant price of $1400.
Ethereum’s price has been on a rollercoaster ride over the past couple of weeks as the markets were heading into the new year’s holidays. The cryptocurrency has been oscillating in a very tight range, indicating that the market is in a period of consolidation. However, a decisive move may be on the horizon, as the cryptocurrency now resides in a critical area.
On the daily chart, the price has been testing a significant resistance level recently, where the $1250 zone and the 50-day moving average have a confluence. While the market is yet to break this fundamental level to the upside, a potential bullish breakout would pave the way for a rise toward the 200-day moving average, around a psychologically significant price the $1400. A valid breakout could be confirmed if the market manages to close a daily candle above the $1250 zone.
The MACD indicator is still in the negative zone and shows no signs of a potential bullish reversal and the RSI is hovering around the 50 level. This could indicate that the market is still in a period of consolidation and that a big move is yet to come.
On the lower time frames, the 4-hour chart shows that Ethereum is trading within a descending triangle pattern. This is another indication that a big move is imminent. If the price manages to break the upper trend line of the triangle, Ethereum could be on its way to test the $1400 resistance level.
In conclusion, Ethereum is in a critical area and it is possible that a big move is on the horizon. If the price manages to break the $1250 resistance level and close a daily candle above it, the bullish momentum could be on its way to test the $1400 resistance level.