• On the four-hour chart, the price of Ethereum has flashed a buy signal in the shape of a bullish divergence.
• This development indicates that ETH will recover and climb, just like the Bitcoin price is indicating.
• If the smart contract tokens turn the $1,649 support floor into a resistance level, the bullish thesis will be proven false.

The bullish indication for Ethereum price matches the buy signal for Bitcoin price on the four-hour chart. If investors act on ETH, this development could prove to be quite rewarding for them.

The price of Ethereum is about to increase.

After a recent 14% drop, the price of Ethereum has been closely consolidated around the $1,843 support level. While the Relative Strength Index has produced higher lows, this range-bound trend has produced lower lows, signalling a deviation known as “bullish divergence.”

An increase in the price of Ethereum is anticipated when the technical formation resolves. The midpoint of the most recent nosedive, $1,974, is one of the marks that ETH bulls are expected to target. 

If this obstacle is overcome, Ethereum’s price will be able to cross the $2,050 barrier. This action would result in a 12% gain for traders overall.

It may be disastrous for traders if purchasers are unable to support the price of Ethereum and sellers seize control instead. In this scenario, ETH can descend towards the bullish breaker, which ranges from $1,665 to $1,744. 

The bullish thesis for Ethereum price will be refuted if a four-hour candlestick close below $1,744 converts it into a resistance level and could potentially lead to a correction to levels of $1,588 and $1,470.