The second crypto by market capitalization is bouncing off short-term support. Moreover, Ethereum (ETH) is also showing signs of rapid bullish movement. Although risky, this is an opportunity for crypto traders. However, if this rise is not sustained, a drop below the equal lows can be considered.
Ethereum (ETH): a favorable movement for scalpers?
The eternal second is currently bouncing off the $1280 support after the recent highs. Investors can then expect this rallying move to drive Ethereum above the highs equal to $1343.
This provides a trading opportunity for scalpers. Indeed, this movement represents a gain of 5% for a long position on Ethereum. If the bubbles continue the bullish pressure, the price of this crypto might even surpass the highs at $1402. This offers a total gain of 9.5%.
However, the most likely scenario for Ethereum remains the sweep of the $1343 level, followed by a corrective move. This retracement is for market makers to reach the stops losses set below $1270. If the bears reacted, it could trigger a decline in the price to the $1220 level. If the price breaks this support, we can consider the three-digit Ethereum.
A rise capped at $1,440?
Whichever move plays out first, Ethereum’s upper limit is capped at $1440. However, if Ether turns this hurdle into support, it may reach $1559.
On the other hand, if the price closes a decisive candle below $1220, it will invalidate the bullish thesis. This scenario could increase selling pressure that will potentially cause Ethereum to move lower. In this case, the most relevant supports stand at $1200 and $1080.
In sum, Ethereum appears to have maintained selling pressure. However, the price is still trying to bounce off the key level at $1280. If Ethereum’s rise from this support holds, a bullish move could clear the high at $1343. But this rise will probably be temporary since the price will have to go back to the $1270 level. A daily candle close below $1220 will invalidate the previous bullish scenario.
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