After losing its dynamic support yesterday, Ethereum experienced a decline, reaching the $1,850 range. Notably, there was an increase in demand in this area, leading to a pullback towards the previously broken dynamic range. However, it is crucial to exercise caution as the recent bullish candles observed in the 1-hour timeframe may not necessarily indicate immediate price growth for Ethereum.
As highlighted earlier, the key factor that would signify a potential price growth for Ethereum is a decisive breakthrough of the formidable $1,900 resistance level. This specific resistance has been a significant obstacle in the CME market, hindering Ethereum’s price from surging further.
Given this situation, there are two prudent approaches to consider. The first is to wait for the price to either return to robust support levels, assessing whether they can hold and initiate a bullish reversal. The second approach is to closely monitor the price movement and wait for Ethereum to demonstrate a clear and convincing break above the $1,900 resistance level, signifying a potential upward trend continuation.
By adopting a cautious and patient stance, traders can make more informed decisions based on the evolving market conditions and the critical levels Ethereum needs to breach for sustainable price growth.