The price of ETH can detach itself from the low of BTC (BTC) and print its own path of high.
Thus, according to the trader to analyst Jonathan Morgan the bulls have set several bear traps and may have laid the foundation needed to launch ETH to new highs.
Therefore, the analyst points out that the price of ETH remains within a large and broad bull continuation pattern known as the bullish flag.
Thus, he said, December 2021 showed that sellers made several attempts to close ETH below the bulls’ banner, creating some fear among ETH optimists.
“However, buyers were able to return the ETH to the bull flag. Short-term resistance for the ETH price is the Tenkan-Sen at $3,850. Above that, there is a $4,000 confluence zone with the Kijun-Sen and the 2021 Volume Control Point″, he said,
So, he says, for ETH to resume the uptrend that stopped in mid-November 2021, ETH needs to close at $4,200 or slightly above.
So he points out that a $4,200 close would place the daily chandelier above the top of the cloud (Senkou Span B), while placing the Chikou Span above the candlesticks and in open space.
“More conservative traders can wait to see what happens when the price of ETH returns to $4,500,” he said.
So he points out that $4,500 is a solid psychological number, but it’s also where the 61.8% Fibonacci extension exists and is just above the last significant December 9th high of $4,450.
“An entry of $4,500 or more would meet the basic entry rules in the breakout above a bull flag,” he says.
But, he also points out that any long trend for the price of ETH would likely be invalidated if ETH falls below the high flag and has a daily close below $3,600.
“That would likely trigger a quick move down towards the $3,200 value area,” he concludes.