Ethereum Resumes Bullish Trajectory as Price Corrects Near $4200 Resistance

Ethereum recently experienced a temporary slowdown in bullish momentum just shy of the key resistance level at $4200. This deceleration followed a prolonged upward trajectory observed since late January, indicating a period of substantial price appreciation.

 

The prevailing bullish momentum was reinforced by the test of the supportive trendline within the parallel channel, as depicted on the daily chart. As the price retraced, it entered into a phase of discount pricing, characterized by inefficiencies in the market. The rapid ascent in price led to the formation of fair value gaps within the trend, prompting a pullback to address these gaps and restore market efficiency. During this correction, the price dipped to test the bullish trend line, which also acted as resistance for the parallel channel.

Ethereum Key Levels

Demand Levels: $3031.0, $2719.0, $2196.0
Supply Levels: $4200.0, $4500.0, $4936.0

In terms of technical analysis, the recent pullback in Ethereum’s price paused upon testing the bullish trend line. This test coincided with the Stochastic Oscillator dipping into the oversold region, indicating a potential reversal in bearish momentum. The subsequent emergence of a large bullish candle further reinforces this sentiment, suggesting a resumption of upward movement. With these indicators aligning, it is expected that Ethereum will surpass its previous swing high and advance towards the $4200 level.

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