Ethereum Price Overview

Ethereum saw a HUGE rally towards the end of December, even having over a 100% increase in price from December 11th-18th, before we saw a minor correction going into the new year. Eventually, the bulls celebrated as price finally reached $1k and broke the structure convincingly. It has been on the rise ever since and below we'll review it's progress starting from the beginning of December.

Price Jumps 100% after a Channel Break

Candles were bouncing back and forth within a channel throughout the early days of December, but eventually broke for a rally past the $500 structure to new highs and eventually settling at the $840 price point in Mid December. Christmas has definitely come early for Ethereum investors, however eventually what goes up - must come down. ![](https://steemitimages.com/DQmRYaQfD2KounHKGaqdFCrvVLQ2ZVoUtN2Ec74XrRocKHH/image.png)

Correction to the prior $500 Structure

We saw price fall significantly almost 80% after a HUGE rally to the previous structural support of the $500 price. However, it seemed to fake out investors who thought there may be a much anticipated immediate crash (this move happened to a variety of coins at the same time) and price eventually settled right at $600. This was an interesting development as the market assumed that the bubble was possibly bursting due to the significant decline in price for almost every major cryptocurrency - however in the end the bulls stayed steady and brought the price back to equilibrium. ![](https://steemitimages.com/DQmZi22j6zg4A5Jma6YNgFNYQ734QGnJ7jHZLt8nFhiYDTM/image.png)

Double Bottom Created

Right before Christmas, we saw a very nice, strong double bottom formed after price continuously tried to test the support structure. This created an opportunities for buyers to opt into Ethereum @ around $620 prior to a rally back towards the $800 area. ![](https://steemitimages.com/DQmPL9rvg9idb51sCW8Krqpe8V1yjuQNtvC1SgA7M8HbWkV/image.png)

Strong Triangle Formation formed, with a Bullish bias

As we approached the new year, we saw the beginning of an interesting triangle formation with a bullish bias. Price bounced at least 3 times off each trend line, solidifying the formation and giving buyers a potential signal upon the breakout of the triangle. > A Triangle Formation is a Horizontal trend line and a upwards or downwards slanted trend line, where the trajectory meets the Horizontal Trendline for a possible reaction point. Essentially, buyers will begin looking for entry opportunities at the "squeeze", or when price approaches the narrow end of the triangle. ![](https://steemitimages.com/DQmcX75KppENA4RNVzTk1vFStJcAnG9NQWSTCoDWWSDeBm7/image.png)

Price breaks Triangle for new highs past previous Supply Zone

And BOOM!!!!! Price BLEW past the prior $840 Supply Zone and ended up making new highs and not even blinking when breaking the $1k mark in the new year. As far as we've seen, price has not stopped it's rally and it has continued to progress towards the $1.1k mark. It's too soon to tell when the next correction will be, but it will be a good bet that price will eventually test the $1k structure area again before the next rally, as it is a major psychological level. ![](https://steemitimages.com/DQmcaM5KsUAPiRBBKjhKE3djYyDLDjGoihCsMw5XGiGZtMk/image.png)

What is next?

It will be a good time for investors to wait and see where the price will eventually correct. Conventional trading wisdom will state that price will gravitate back towards the $1k price structure and then use that as a reaction point for a possible rally to higher highs. Again, when testing trend lines, wait for the close of the candle before the entry, or risk being involved in a fake out & a resulting candle wick.