Justin Bennett: Ethereum Looks To Prepare For A Move This Month

According to top crypto market analyst Justin Bennett, the number one smart contract platform Ethereum (ETH) looks to be preparing for a breakout this month.

In a recent video update, the analyst notes that ETH is facing a diagonal resistance that has been looming over the market for several months.

“We have a trendline that extends from the November high. Ever since this time, Ethereum has carved lower highs. It has not been able to carve a higher high ever since late last year.”

According to Bennett, however, Ethereum is being supported by an uptrend line that has started since 2020.

“At first glance, it looks like this lower level extends from this low back here in January… However, if you go back, this level actually extends back to 2020… This level extends from the February 2020 high right before the March Covid sell-off… You can see that it was once resistance in August and then right here before the breakout (November 2020).
Throughout (the year 2020), during the last portion of the bear market for Ethereum, this level was resistance. Fast forward to today, you can see where over the past few months, so far in 2022, this level is serving as support.”

The analyst notes that Ethereum is currently trading inside a symmetrical triangle, and is now approaching the key point of the pattern. Bennett expects the smart contract platform to break out of the pattern this month – however it could go either way.

“Right now, this is still a waiting game because at the moment, the market is still caught in consolidation… So in order to confirm the break one way or the other, we need to see Ethereum close above this level right here, so this trend line right around $2,800. Or, see a daily close below this area around $2,500.”

If bulls take control of the break, Bennett targets ETH to hit resistance at $3,600. Should bears lead the move, ETH will likely go down to long-term support level $1,700.