ETH/USD Daily Chart (Binance) – Source: TradingView
It is highly likely that ETH will pull back at that level once that trend line is touched. A long-dated trend line like this would normally have a significant influence on the price action.
The key support to watch would be the $2,800 level in this scenario. This area would give us the necessary information to decide if the rally can continue or not. If ETH bounces off that mark, then the market may proceed to hit $3,800 and fully invalidate that trend line resistance.
However, if the price drops below that level, it could mean that bulls have started to capitulate and the uptrend is losing strength. This seems highly unlikely at this point but anything could happen.
Rounding Bottom Also Favors Bullish Outlook
Now, the second interesting chart that I would like to share with you also favors a move to higher ground for ETH. In this case, a rounding bottom pattern has formed and the price action has already broken its neckline.