Ethereum has been showing significant strength in recent days, causing the price to trade within a decisive pennant pattern. This pattern indicates the possibility of the price rising above $1300 or falling below $1100. Despite a drop in volume, the volatility remains high, suggesting a potential slight price increase in the short term, followed by a potential bearish move.
The cryptocurrency market has been under bearish pressure for a while, and after a few negative events that affected crypto assets, most altcoins saw their values halve. However, ETH/USDT has remained above $1100 and rebounded each time it dropped below this level. It is expected that the price may drop another 5% to test levels below $1130 amid the current bearish trend.
After a period of consolidation, it is expected that the ETH price will rise slightly and consolidate around $1200 for a while before surging towards the pivotal resistance at $1240. Bears may attempt to prevent the price from rising above these levels, but after enduring significant pressure, the ETH price could break out. By the end of January 2023, the price may reach $1300, but it may face resistance just below the $1350 price zone.
In the first few days of February, the ETH price may reach the peak of a symmetrical consolidation pattern, which is typically bullish if the cryptocurrency can generate sufficient buying volume. In this case, a breakout above $1400 is possible, but if there is a rejection, the price may continue to consolidate between $1250 and $1300 until the bulls enter the market.