- Ethereum price shows no signs of moving out of the $1,440 to $1,280 barriers.
- Investors could get a potential drop to $1,220 before market makers trigger a run-up to $1,343 and $1,402.
- A daily candlestick close below $1,220 will invalidate the bullish thesis for ETH.
Ethereum price continues to consolidate between two crucial barriers with no signs of breaking out. This development could change as ETH has slithered close to breaking below a stable support level.
Ethereum price hatches a plan
Ethereum price has been stuck trading between the $1,440 and $1,280 barriers since September 18. As mentioned in the previous article, ETH continues to trade extremely close to the lower limit and a further sell-off in Bitcoin price could trigger a breakdown.
If Ethereum price slices through the $1,280 support, it is likely to revisit the September 21 swing low at $1,220. This development will complete the triple-tap setup. This technical formation contains a deviation below a previously formed swing low. After this sweep, the asset usually attempts a rally but fails, resulting in a retest of the first swing low.
The rally that emerges after retesting the first swing low often targets the buy-stop liquidity resting above. In this case, Ethereum price is yet to produce the last leg; if successful, this setup is likely going to propel ETH higher by 10% to sweep the first equal high at $1,343.
If the momentum persists, Etheruem price could tag the next set of equal highs at $1,402 and target the buy-stop liquidity above it. This move would constitute a 15% gain from the $1,220 support level.
ETH/USDT 1-day chart
While this outlook for Ethereum price paints a bullish picture, ETH needs to bounce off the $1,220 support level. If buyers fail to step up here, it could lead to a daily candlestick close below the aforementioned level, which will invalidate the bullish setup.
In such a case, Ethereum price could slide lower and find support at the $1,200 psychological level.
