ETH on edge of bullish rally. What may push altcoin higher?

The main altcoin closed the previous trading week in the green, jumping above $4.3K. However, later, the price resumed falling. On November 22, it was trading around $4.2K. Although the digital coin is losing value, its on-chain indicators are still quite high and buyers are ready to move towards all-time highs. To prove the intention to rise, ether should resume climbing and end the correction.

Last week, the altcoin dropped to $4K, broke this level, and immediately recovered. The price failed to hit the final correctional target at $3.6K. Bulls started pushing the price higher towards its new peaks. To stop the correction, ether should consolidate above $4.3K. It is an important level that is considered a point where the price may start its new rally.

First of all, a strong support level is located at $4.3K. This could be an important psychological factor for investors. Secondly, there are other important levels near $4.3K that prove strong potential for a jump. The 0.236 Fibonacci level is also located near $4.3K that intensifies the support level and provides buy signals. If the price consolidates above $4.3K, the level of 50-day EMA will be intact. All these facts prove that the market is ready for a new rally, if the price consolidates above $4.3K.

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On the four-hour chart, there are prerequisites that ETH will be able to consolidate at the mentioned level. Thus, sellers failed to push the price lower and form the Bearish Engulfing pattern. It means that ether does not have any reasons to continue falling. Notably, last week, the price more than once tested the resistance level of $4.3K. It is expected to break the level and consolidate above it. Technical indicators also are reflecting bullish sentiment. The stochastic oscillator and MACD have formed a bullish crossing, thus pointing to a large-scale jump if the price fixes above $4.3K. The RSI indicator is approaching the overbought zone, displaying the mounting demand for ETH.

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At the moment, there are all the reasons to say that the altcoin will manage to consolidate above $4.3K and resume the uptrend. In this case, a local resistance level will be located at $4,672. Breaking this level, the price will move towards an absolute high and will try to renew it. In case of a successful bullish rally, the price peak is located at $6.6K. If the price fails to rise, it is likely to slide to the range of $4.1K-$4.25K and drop even deeper to $4K. The asset may even break the level of $4K to decline to $3.6K-$3.8K.

The material has been provided by InstaForex Company - www.instaforex.com

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