- Ethereum price has shown incredible strength as it tore through the $1,195 resistance level.
- Although a minor retracement is underway, ETH continues to aim for a retest of the $1,400 hurdle.
- A daily candlestick close below the November 28 swing low at $1,151 will invalidate the bullish thesis for the smart-contract token.
Ethereum price performance over the last few days has been incredible as it breached critical hurdles. This move occurred when Bitcoin was consolidating, hinting at the underlying strength of ETH buyers.
Ethereum price plans for the future
Ethereum price has not looked back since it formed a buy signal on November 22. So far, this trend reversal has resulted in a 15% upswing that has allowed ETH to sweep buy-stop liquidity above $1,290.
While a retracement is underway, it is nothing to worry about. In fact, interested investors should be looking to buy the dip as long as Ethereum price stays above $1,195. In such a case, a consolidation followed by a spike in buying pressure could propel ETH to equal highs at $1,350.
This thrust could exhaust the bullish momentum, but ideally, Ethereum price could extend up to the $1,400 psychological level. Traders can consider booking partial profits at this level and call it a day.
However, Bitcoin price looks strong from a mid-to-long-term outlook, therefore, the chances that Ethereum price will stop its rally at the psychological resistance is unlikely. The logical place to book profits for ETH longs would be at the retest of the $1,545 hurdle.
This move would constitute a 30% gain from $1,195 and could signal a temporary top formation.
ETH/USDT 1-day chart
While things are looking up for Ethereum price, a spike in selling pressure could see ETH slide lower, especially if Bitcoin price fails to cease its selling pressure.
If Ethereum price produces a daily candlestick close below the November 28 swing low at $1,151, it will create a lower low and invalidate the bullish thesis for the smart-contract token. Such a development could knock ETH down by 7% to retest the $1,073 support level.