EthereumLong
Pulling Back and Retesting the Breakout Level
Ethereum’s price recently broke above the key resistance level at $3,800, completing the breakout from the Cup and Handle pattern. This breakout is a bullish signal, pointing to the potential for further upward momentum, with a target of $5,400.
However, it’s normal for prices to pull back and retest the breakout level after such a move. This pullback serves two purposes: it tests whether the previous resistance at $3,800 can now act as support, and it helps the market consolidate before the next leg up.
What to Watch For:
Holding Above $3,800:
If the price holds above $3,800 during this retest, it confirms the breakout as valid and sets the stage for further gains.
A strong bounce from this level, especially with rising volume, is a sign of renewed bullish momentum.
Key Support Level at $3,525:
If the price falls below the handle low at $3,525, it would invalidate the pattern and could lead to further declines.
Breakout Confirmation:
For the next upward move to $5,400, buyers need to step in and push the price higher after this pullback.
In conclusion, the pullback and retest of $3,800 is a typical and healthy part of the breakout process. If the level holds, the bullish target of $5,400 remains in play. As always, this is not financial advice. DYOR (Do Your Own Research) and manage your trades with caution.
However, it’s normal for prices to pull back and retest the breakout level after such a move. This pullback serves two purposes: it tests whether the previous resistance at $3,800 can now act as support, and it helps the market consolidate before the next leg up.
What to Watch For:
Holding Above $3,800:
If the price holds above $3,800 during this retest, it confirms the breakout as valid and sets the stage for further gains.
A strong bounce from this level, especially with rising volume, is a sign of renewed bullish momentum.
Key Support Level at $3,525:
If the price falls below the handle low at $3,525, it would invalidate the pattern and could lead to further declines.
Breakout Confirmation:
For the next upward move to $5,400, buyers need to step in and push the price higher after this pullback.
In conclusion, the pullback and retest of $3,800 is a typical and healthy part of the breakout process. If the level holds, the bullish target of $5,400 remains in play. As always, this is not financial advice. DYOR (Do Your Own Research) and manage your trades with caution.
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