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 most altcoins have seen their values halved after some negative events affecting crypto assets. However, ETH/USDT held above $1100 and bounced back every time it broke below this level. It is expected that the price may decline by 5% to test the $1130 level 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, ETH price could reach the peak of a symmetrical consolidation pattern, which is usually bullish if the cryptocurrency can generate enough buying volume. In this case, a breakout above $1400 is possible, but if there is a rejection, the price could continue to strengthen between $1250 and $1300 until the bulls enter the market.
