After the market crash that rocked the price of Ethereum and sent it back down to $3,400, there has been some recovery as the market has once again followed Bitcoin's path. However, there is still a lot of struggle between bulls and bears as to where the Ethereum price will head next. In response, one analyst pointed out some interesting formations on the Ethereum chart and factors that could lead to a rise to $14,000.
Two things are showing strength in the price of Ethereum
A fearless cryptocurrency analyst explained that there are two questions Ethereum investors should ask to determine whether the price has turned bullish. The first question asks whether the current trend is bearish or bullish.
The analyst explains that the trend has turned more positive from here, with the price of Ethereum rising after breaking above $1,600 in April. So as long as this holds, the trend will indeed remain strong, which leads us to the second and most important question.
This question focuses on Ethereum price action, the problem here is that the altcoin continues to trade with resistance. This major resistance lies at the $4,400 level, and the digital asset has been rejected from this level several times in the past.
Accordingly, the cryptocurrency analyst tells investors to keep an eye on the two-week chart for confirmation. Ethereum price should break above $4,400 and then clear $4,500 in a decisive move. This means no sharp price wicks are included. However, if this resistance break is completed and support is confirmed, the Ethereum price could continue to rise towards $14,000.
There is also the fact that Ethereum price is on the verge of completing another two-month candle. The analyst points out that price resistance for this trend is $3,400, which coincidentally is the low of last Friday's liquidation event. Therefore, it remains a critical support point for prices.
Importantly, the analyst points out that if Ethereum price can complete a two-month candle above $4,400 by the end of October, it confirms that the price action is positive and the price can continue to rise.
However, this means that if the price actually fails to exceed $4,400 on both the two-week and two-month charts, the bears could take control again. If it turns downward, you can see that the decline may deepen. “A positive answer to questions 1 and 2 is a green light for a long-term entry. And more importantly, it cancels out the bearish idea,” the analyst said.
Featured image created with Dall.E, chart from Tradingview.com
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