December 3, 2020 / Analytics

Ethereum Price Analysis: Does Bull Run End On ETH Market

ethereum forecast

As a result of the last pump, the Ethereum (ETH) rate did not stay above $ 600 and corrected to $ 560. Therefore, the coin should drop in price to $ 550 by December 10.

Key Points

  • ETH price fluctuates above the 100 hour moving average ($ 568).
  • A bearish trend line has formed with resistance around $ 595 on the hourly chart.
  • The downtrend will accelerate if the bears break the support at $ 570.

A powerful bullish trend emerged on the Ethereum market on November 28. In three days, the price of the asset increased by 26% – from $ 506 to $ 637 (Bitstamp data). Nevertheless, the cryptocurrency began to be dumped on Tuesday, and its value fell sharply to $ 560. Traders bought back ETH/USD quickly. Therefore, ETH price increased to $ 619. But buyers were unable to gain a foothold at this mark, and the coin rate flew down again.

ethusd chart

ETH price changes within a contracting triangle, the lines of which will cross on December 3. With a high degree of probability, the figure will be broken down. If during the bearish trend the barrier of $ 570 is overcome, then Ethereum will fall in price to at least $ 550. At the same time, the upward movement will meet strong resistance at $ 600 and $ 608 (50% and 61.8% Fib).

Bull Run Ends On Ethereum Market

ETH price has been growing since March 2020. Judging by the chart, the market is in the fifth wave of a bullish trend, after which a downtrend will occur. In addition, the Bitcoin market is showing a similar trend.

The chart clearly shows the first wedge after the pump up to $ 624, the second is still forming. Most likely, in the near future the price of the coin will fall to about $ 520, then the rate may rise to $ 580-620. After that, a full-fledged dump starts with a target of at least $ 480. These conclusions can be reached by drawing an analogy with the trend recorded in February 2020.

ethusd chart

Analysts suggest that the Ethereum 2.0 blockchain upgrade will trigger a new wave of bullish trend up to $ 800. However, the current upward trend has already moved beyond standard time frames. The dump was supposed to start at the end of November. Considering the dynamics of the Ethereum rate change in 2017, a bearish trend will appear in late December or early January. The network upgrade could only break patterns if ETH can attract additional investment.

ethusd chart

Technical indicators:

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI is above 50 (in the neutral zone).
  • Major Support Level – $ 570.
  • Major Resistance Level – $ 600.
  • The nearest pivot points are $ 560 and $ 614.
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