- Ethereum price made a false break below a short-term trend line yesterday.
- ETH price breaks above $2,695 and is set for a run towards $3,018.
- This would mean 13% gains for ETH and a more favourable outlook for next week.
Ethereum (ETH) price is set to book the best gains it has made for the whole of 2022, as a bullish candle has now formed on the back of a significant support level. With that move, many bears are getting hurt as they probably fell in the bear trap with the false break below the supportive short-term trend line. Expect more upside to come with global markets enjoying the rally in Amazon shares, which is spilling over into cryptocurrencies and lifting sentiment in ETH towards $3,018.
ETH bulls are stabbing bears in the back with a trap
Ethereum price was dangling below a short-term trend line and looked quite heavy after the slippage from META earnings. But that markets can change their minds overnight is proven yet again, after Amazon’s earnings fueled a booster rally which we are seeing today. This has spilled over into cryptocurrencies and is lifting sentiment in ETH prices with a firm break above $2,695, squeezing out bears in the process, who went short on the false break of the trend line, and it is now just a matter of time before they close out and take their losses.
ETH price is thus set for a second rally today as those bears will need to revert to the buy-side volume to close and cut their losses. This will add a boost to ETH prices and could see Ethereum bulls hitting the price target at $3,018, taking out the $3,000 level, and setting the stage for next week. With that move, the red descending trend line could be broken, and with that, the downturn since December, finally breaking the chances for bears and setting the stage for a possible longer-term uptrend.
ETH/USD daily chart
Nevertheless, there are still some earnings on the docket for today that could surprise to the downside and see those tailwinds as quickly fade as they came. Expect that with that lack of support, ETH price will collapse back to $2,695 and start to weigh further on the bulls. Should that spiral into equities, pushing them firmly in the red, and impacting safe haven flow – expect a dip back towards $2,600.