Ethereum price action to see profit-taking intensify in wake of $4,000
- Ethereum price is on a tear as global cryptocurrency sentiment is enjoying favorable tailwinds after Bitcion reclaimed $50,000 earlier this week.
- ETH price nears $3,845 where ETH bulls face a double resistance barrier.
- Ethereum price action is underpinned by positive tailwinds that are key to another 18% of profits.
Ethereum (ETH) price action has been on a nice run since the beginning of October, paring back losses from September. With that said, bulls face a double hurdle at $3,845, with the monthly R1 resistance level and the longer-term red descending trend line coming in just above. Bull volume is wearing thin and could make the bull run fade preemptively. However, if bulls could close above the red descending trend line, another $18 of profits would await them with the retest toward $4,646.
ETH price action shows bulls need to pick up their game to keep momentum going
In Ethereum price action, bulls have had their work cut out for them this month, paring back losses that occurred during September. With price action in ETH almost back to September highs, the bull run seems to be fading with profit-taking robust near $3,845. Bulls are hitting a curb there with the monthly R1 resistance level, which almost entirely falls in line with the one from September. Add to that a longer-term red descending trend line on the topside, and price action looks very muted.
ETH price has gotten help from current positive sentiment in global markets and the renewed interest of the broader public in Bitcoin and cryptocurrencies. Ethereum bulls have two tailwinds that should help lift them above this topside. If ETH can close above $3,900, expect further gains to run up toward $4,646 with a retest of the high from May.
ETH/USD daily chart
Ethereum price could turn around, should one or all of the favorable tailwinds start to fade and even turn into headwinds for ETH. Expect price action to correct to the downside with a dip toward $3,250, which falls in line with the monthly pivot level. A further leg lower would bring $3,018 in favor of bears, further squeezing bulls out of their long positions.