Ethereum’s price is approaching an important resistance line. There is a good probability of an upward rebound from that level. Alternatively, a turn to decline could form there.
Will the upward movement continue?
The main direction is up. As there was no turn on a medium-term scale, the odds are on the side of an upward trend. For a turn to decline, Ethereum’s price has to break through the level of $13.4.
The key level that we found yesterday is updated, and is now at $13.4. That is the intersection point for a diagonal channel, Fibonacci level 76 and the limit of a short-term flat.
A lot of bulls can open their deals at that mark. That way, the movement of Ethereum’s price will hint at the most likely scenario of development.
If the bulls keep hold of their advantage, there will be an upward rebound from that line. However, if the upward trend has insufficient support, there will be a fortification at that level and a turn to decline. Naturally, in that scenario Ethereum’s price cannot return to the top limit of the flat at $14. The minimal target for the downward turn scenario is $12.
The $13.4 resistance is likely to be the key point during the formation of the coming trend.