How long can Ethereum (ETH/USD) stay in the bear market? Not easy to answer, especially since it remains to be seen how the Federal Reserve will act to tame sky-high inflation. However, one thing we are sure of is that the accelerated selloff witnessed earlier this year is weakening. For Ethereum, the cryptocurrency has set $1,250 as the key reference zone. Is it a bull sign?
A popular crypto analyst who called the market bottom in 2018 is telling his 211,400 Twitter followers to buy ETH now. According to the pseudonymous analyst, a bullish reversal is imminent for ETH. He says the cryptocurrency is repeatedly moving along the 200-day week MA, a bullish sign. He expects ETH to rally 80% from the current level, aiming for the $2,400 mark.
Ethereum defends $1,250 as price finds stability in a bear market
Source – TradingView
Turning to the technical side, we can see that Ethereum has been defending $1,250 for the past month.
The price is also clear of the 200-day MA on the weekly chart, giving hopes that a rebound is possible. Note that the 200-day MA is considered a crucial trend indicator. It is used to analyse and spot potential long-term trends. With ETH remaining supported by the moving average, we should remain keen on the price action.
Further, a small bullish pin bar formed at the $1,250 support on the weekly chart. That was after an inside bar formed at the same level. Both are signals of a potential break to the upside.
Should you buy ETH?
While the triggers for a bear market remain, ETH is attractive at the current price. Bulls have repeatedly rejected a price decline below $1,250, a sign that a reversal could occur there. This does not suggest that we may see a lasting bullish surge in the short-term or near term. It however indicates a potential bottom price.
For bulls, ETH targets lie at $1,450 and next at $2,000. However, should the bull market be confirmed, ETH could make a strong rally to $2,400 and previous highs.