Ethereum price is currently re-entering a bullish ascending channel above $1,200. After a massive fraud, the second largest cryptocurrency is expected to maintain strength to jump above $1400, but the massive redistribution phase is about to begin soon. This phase could see the price decline hard which could well sustain a lower target below $900.
Despite the latest inflation rates recording new highs, the asset continues to grow significantly. However, the ETH price rally for the past 6-8 weeks has been quite weak and is swinging within the distribution phase. The asset is moving within a parallel consolidation and is moving towards upper resistance after a firm flip from the lower bottom.
There is no doubt that the price is likely to witness a significant rally near the $1,270 level, but the bears are likely to pull the price lower. The S/R was retested and a weak bounce was produced, so the asset is expected to be rejected below $1300.
A final surge is possible before a new dump where a remarkable sequence of lower elevations can be established. Therefore, a 30% to 35% improvement is very much possible in the coming days.
The correction may continue for 4 to 8 weeks in July and August 2022, and the end target for the bears could be around $850 to $900. Ethereum (ETH) price pattern is currently showing a slight uptrend, but the asset could face rejection soon.
Mainly for this reason, the MACD represents ease of buying volume. On the other hand, the RSI is rising in the longer term and hence an interim bounce can be expected till the weekend.