Ethereum has broken out of its consolidation zone and is eyeing 4k again.
But let's start with the basics: Similar to Bitcoin and many altcoins, Ethereum experienced a sharp decline when the price dropped almost 20% from 4,000 to 3,300.
The drop happened after Ethereum saw two (unsuccessful) attempts to break above the crucial 4k resistance—a typical double-top pattern.
Unfortunately, Ethereum's price also dropped below the downtrend line, which started in March 2023. As a result, ETH has been trading between the support at 3,300 and the downtrend line in a small area, which has been constantly narrowed.
Breakout
Today, Ethereum broke out of the downtrend with volume and a strong green candle. We will likely see a retest of the 4k resistance as the next step.
Therefore, trading the way up to the 4k seems reasonable. Stop loss should be placed below the downtrend line or (higher risk) below the support line.
Moreover, if Ethereum tackles 4k again, we will see the resistance fall. Therefor, I would go for a partial profit taking at this level.
