Ethereum token has gained by 11% in a week
The token eyes $1,250 as recovery takes shape
We need further confirmations/breakout before buying ETH
Ethereum price (ETH/USD) bulls are relentless despite a prolonged crypto winter. A gain of 11% in the last one week has taken the token to $1,205. The price level is close to the support zone of $1,250. Does this indicate ETH has initiated a bullish reversal?
Far from it – ETH is not yet bullish, but recent recovery boosts chances of it recapturing the $1,250 level. It should be remembered that analysts have been calling for a below $1,000 ETH price to another bottom price. However, Bloomberg senior macro strategist Mike McGlone expects Ethereum to hold up above $1,000. In his view, $1,000 is pretty solid support for ETH. He still warns that the FTX implosion impacts will linger longer before any bullish movement.
ETH price movement and outlook amid slight recoveries
Ethereum printed a low of $1,080 earlier this month after the FTX collapse. Bulls have kept the level intact, despite repeatedly losing the war at $1,250. ETH retested the November bottom and is on recovery towards the resistance again. Investors will eye a potential breakout at the key level to ascertain if higher prices are possible.
ETH/USD Chart by TradingView
The technical indicators show an improved price outlook for Ethereum. A bullish MACD crossover was initiated as the price recovered, although it remains in the bear zone.
The RSI reading has shifted from the oversold region. However, it remains below the midpoint, indicating that sellers still have the upper hand on the cryptocurrency.
Should you buy ETH?
A price recovery to $1,250 is imminent for the Ethereum token. However, if considering buying ETH, you should wait until a breakout is confirmed above $1,250. A breakout would set up the cryptocurrency for the next potential resistance at $1,450 and $1,650.
On the flip side, if buyers fail to break above $1,250, ETH will remain under the control of bears. A price return to $1,000 is on the horizon or even lower.
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