- Ethereum price is at an inflection point and could retrace if the bullish momentum falls short.
- The MRI has flashed a preemptive top signal on the 1-day chart adding credence to the bearish outlook.
- A 14% pullback to the upper barrier of the demand zone ranging from $2,150 to $1,965 seems likely.
Ethereum price has stayed afloat despite the market-wide correction. However, this upswing could come to an end according to a technical indicator.
Ethereum bulls at make-or-break point
Ethereum price has been on a tear, hitting an all-time high at $2,553 after multiple failed attempts to breach the $2,000 level successfully. Now, a minor retracement could be headed ETH’s way.
This bearishness is primarily due to the Moment Reversal Indicator’s (MRI) preemptive top signal formed on the 1-day chart. This setup contains a yellow ‘one’ candlestick, which suggests that the rally is nearing its end.
However, if sellers overwhelm the buying pressure in this range, a swift pullback to the upper band of the demand zone at $2,150 seems likely.
ETH/USDT 1-day chart
The bearish outlook will face invalidation if ETH breaches its recent top at $2,553 in a convincing fashion before hitting the demand zone. If this were to happen, Ethereum price could be on the verge of another bull run.
Hence, investors can expect this pullback to be a short-term setback before the buyers take back the reigns. Therefore, a decisive close above the all-time high will trigger this uptrend toward the $3,000 level, which coincides with the 127.2% Fibonacci extension level.
This upswing might witness a consolidation around the $2,700 level, which might help more market participants accumulate Ether before riding toward a crucial psychological level.