After the stock market crash that sent the price of Ethereum plummeting back towards $3,400, there was some recovery as the market once again went the way of Bitcoin. However, there is still a lot of struggle between the bulls and the bears when it comes to the direction Ethereum price could take. To this effect, an analyst pointed out some interesting formations on the Ethereum chart and what could trigger a rally up to $14,000.
Two Things Need to Become Bullish for Ethereum Price
Crypto analyst Without Worries pointed out that Ethereum investors need to ask themselves two questions in order to determine whether the price has turned bullish or not. The first of these questions asks about the current trend, asking whether it is bearish or bullish.
The analyst explains that with the breakout of $1,600 and the rise in Ethereum price in April, the trend has become more positive from here. Therefore, as long as this holds, the trend effectively remains bullish, which leads to the second and more important question.
This question centers on Ethereum price action, and the issue here is that the altcoin continues to trade under resistance. This major resistance lies at the $4,400 level, with the digital asset having been rejected several times from this level in the past.
From here, the crypto analyst asks investors to keep an eye on the 2-week chart for confirmation. Ethereum price is expected to surpass $4,400 and then cross $4,500 with a decisive move. This means that price increases do not count. But if this resistance breakout is completed and support is confirmed, then Ethereum price could continue to rise towards $14,000.
There is also the fact that Ethereum price is about to complete another 2-month candle. The analyst points out that the price resistance for this trend is $3,400, which is coincidentally the low of the liquidation event that occurred last Friday. Thus, it remains a decisive point of support for the course.
On an important note, the analyst highlights that if Ethereum price is able to cross its 2-month candle above $4,400 by the end of October, he also confirms that the price action is positive and the price could continue to rise.
However, this means that if the price does not actually rise above $4,400 on the 2-week and 2-month charts, it could give price control back to the bears. A turn towards the negative could confirm that the decline could become more pronounced. “Positive answers to questions one and two are a green light for a long entry. And more importantly, a reversal of the bearish idea,” the analyst said.
Featured image created with Dall.E, chart from Tradingview.com
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