After the price of Ethereum once again dropped below $1000, investor sentiment turned pessimistic. The number of negative posts about Ethereum has increased significantly on the network. Orders worth over $630 million have been liquidated. It would seem that in just a couple of days, the opinion was again established that Ethereum would never see four-digit numbers.
However, Sentiment says the rise in negative posts is having a positive effect on Ethereum's price. This triggers the theory that the market does not behave the way the crowd perceives it. And for the last three days, we have seen an increase in the price of Ethereum. At the time of publication, the price of Ethereum is $1200.
On the 4 hours chart of the ETH/USD pair, a bullish triangle has formed. If we see the price of Ethereum rise above $1150, the price may show a 20% increase. This value was determined by measuring the distance between the two highest points of the triangle and adding it to the breakout point.
Now the 1150 level is the main resistance level for the price. More than 150,000 addresses previously bought about 7,80 million ETH at this price. This proposal may restrain the growth of further price increases. Holders will try to break even each time ETH rises to avoid further losses.
But if the buying pressure is strong enough, then the price of Ethereum can rise to the 1400 area.
If the ETH/USD pair cannot hold above $1150 today, this may lead to a new correction. In this case, levels around the 100 or 200 moving average will be the main support levels on the 4-hour chart.