The price of Ethereum (ETH) increased by 7% after the Momentum Reversal Signal indicator flashed a buy signal on November 22. The price of Ethereum has paused as it approaches a key juncture. The decline in momentum can be related to a dip in buying pressure for Bitcoin. Regardless, a conclusive flip of the immediate barrier could cause ETH to experience a minor run-up.
This critical indicator, as well as a bullish divergence, was highlighted in our earlier post. As ETH stays below the $1,187 mark, investors should be aware that progress has slowed owing to the US holiday season.
This view may persist as the weekend approaches, but Ethereum price traders should wait for the $1,187 barrier to be converted into a support floor before making a move. If successful, ETH might reach previous highs of $1,290 and $1,350.
A sweep of the buy-stop liquidity might ensnare short sellers and cause a surge in purchasing pressure, potentially propelling Ethereum to the $1,400 psychological level.
While the Ethereum price is rising, a rejection at $1,197 followed by a daily candlestick close below $1,073 will result in a lower low.
This event will render the bullish argument for ETH untenable and will precipitate a surge in selling pressure.
In such a case, Ethereum’s price might return to the same lows of $998.
