Ethereum Price Analysis: ETH Market Is Waiting For Reversal

The bears took control under Ethereum (ETH) cryptocurrency market and began to dump coin actively. Therefore, ETH/USD should drop in price to $ 480 by December 17.

Key Points

• Sellers broke through the solid support barrier around $ 585 and ETH consolidated below its 100-hour average ($ 571).
• A downtrend line has formed with resistance at $ 568 on the hourly chart.
• The nearest support barrier is located at $ 560.

Ethereum price did not stay above $ 600 on December 7, so a bearish trend emerged the next day. During 24 hours, the virtual currency rate fell by 11% – from $ 595 to $ 530 (Bitstamp data). Then Ethereum rate corrected to $ 578, but began to decline again and is now hovering below the resistance level of $ 570.

The downside move will hit $ 562, which coincides with the 50% Fibrecorded during the dump from $ 595 to $ 530. The resistance barrier is at the 61.8% Fib – $ 570. Breaking these barriers will trigger an upward or downward movement to $ 581 or $ 555, respectively.

Ethereum Market Reversal

According to the chart, ETH price will drop to at least $ 480 within the next week. The decline in the asset value stopped at this mark at the end of November due to the activation of buyers. If the bulls manage to defend this barrier again, the value of the coin could be adjusted to $ 600. Otherwise, the downward movement will continue up to $ 440.

Drawing an analogy with the bearish trend of 2019, it can be assumed that Ethereum rate will decrease by 37% and drop to about $ 386 while the dump. In this case, the discharge of coins will last 7-8 days. However, the main target of the bears is located in the $ 200-220 region. A powerful uptrend at the end of June 2020 started from this mark.

Elliott Wave Analysis speaks in favor of the completion of the bull run, which began in March. The chart demonstrates that the fifth wave of the uptrend has ended, and the first wave of a bearish trend with a target of $ 386 is forming. Corrective wave B should then appear with a target of $ 440. ETH/USD is likely to fall in price to $ 200-220 as a result of wave C.

Technical indicators:

• 4 hours MACD is in the bullish trend zone.
• 4 hours RSI is above 40 (the neutral zone).
• Major Support Level is $ 540.
• Major Resistance Level is $ 570.
• The nearest pivot points are $ 553 and $ 571.

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