3 Cryptocurrencies in a Price Crunch at Critical Levels: Here's How to Trade Them

investing.com:

Cryptocurrencies faced resistance in their upward trajectory throughout the first half of November, experiencing declines that were met with progressively higher levels of support.

Over the past two weeks, this price action has given rise to a price squeeze pattern for certain altcoins, with Ethereum being a prominent example.

After encountering resistance around the $2,100 mark, Ethereum entered a narrow trading range, forming lower lows in the short term. Avalanche and Chainlink, among cryptocurrencies with significant market capitalization, share a similar outlook.

From a technical perspective, a swift price movement is anticipated following such price compression, contingent on the direction of the breakout. Let's assess the potential short-term price movements by examining the current status of ETH, AVAX, and LINK.

Ethereum jumped as high as $2,100 in the first days of November. The cryptocurrency then began to fluctuate, forming a symmetrical triangle pattern with lower peaks and troughs throughout the month.

It seems to have reached the last part of the price squeeze that continued before entering December.

Accordingly, Ethereum will also break the upper line of the symmetrical triangle if it can achieve a net day close above an average of $2,060 in its next upward move.

Such a breakout could strengthen the buy side and Ethereum could quickly move towards the $2,300 band with a 12% increase in value in proportion to the size of the triangle.

The short-term price target for Ethereum also makes sense with Fibonacci levels set relative to the recent bearish momentum. ETH entered a rapid recovery phase after finding support at $1,520 in October.

The cryptocurrency, which encountered resistance at the April peak at the