ETH’s price appears to be bottoming, but analysts are watching for $2,850 to flip from resistance to support before calling a bullish reversal.
The dire predictions calling for the onset of an extended bear market may have been premature as prices appear to be in recovery mode on Jan. 26 following a signal from the United States Federal Reserve that interest rates will remain near 0% for the time being.
After the Fed announcement, prices across the cryptocurrency market began to rise, with Bitcoin (BTC) up 4.11% and making a strong push for $39,000. This sparked a wave of momentum that helped to lift a majority of tokens in the market, but at the time of writing, BTC’s price has pulled back to the $37,000 zone.
Data from Cointelegraph Markets Pro and TradingView shows that the native token of top smart contract platform Ethereum, Ether (ETH), also responded positively to the rise in bullish sentiment as its price climbed 8.11% on the 24-hour chart to hit a daily high at $2,723.
Here’s a look at what several analysts in the market are saying about the price action for Ether and where the top altcoin could be headed in the short term.
Ether had a “nice 12% bounce” from recent lows
A short-term analysis of Ether’s price action was provided by crypto trader and pseudonymous Twitter user CryptoAmsterdam, who posted the following chart outlining one possible path Ether’s price could take in the near future.
After noting the “nice 12% bounce” in Ether’s price “since the flip,” CryptoAmsterdam warned that they “wouldn’t chase the green here.”
CryptoAmsterdam said:
“Will look for a potential short-term flip of bias if we get back under the lower time frame range high and break that little trendline.”
A bottoming pattern on the Ether chart
Further insight into the state of Ether was offered by options trader and pseudonymous Twitter user John Wick, who posted the following chart highlighting the formation of a bottom pattern on the Ether chart.
Wick said:
“Ethereum showing the same bottoming pattern trying to break out of the resistance zone. Needs to see more upside from BTC to breakout.”
Related: Altcoins book 40% gains after Bitcoin and the crypto market enter a relief rally
Ether bulls need to reclaim support at $2,850
A final bit of analysis on key levels to keep an eye on moving forward was shared by crypto trader and pseudonymous Twitter user TheCryptoCactus, who posted the following chart outlining a key support and resistance zone, as well as an area of heavy accumulation.
According to TheCryptoCactus, those who “longed the bottom” are in a good position for an “easy hedge” at these levels, but the trader cautioned that what is needed next is “to get a valid support/resistance flip of $2,850.”
TheCryptoCactus said:
“Personally, would rather wait till we flip $3,000 into support again and then just ape a huge position.”
The overall cryptocurrency market capitalization now stands at $1.734 trillion, and Bitcoin’s dominance rate is 41.5%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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