December 16, 2021 / Analytics

Ethereum Price Analysis: Is The Bull Run Over in ETH Market?

Ethereum analysis forecast

Ethereum (ETH) cryptocurrency rate stabilized in the range above $ 4,000. However, ETH did not exceed the resistance barrier at around $ 4,127. Therefore, the coin should drop in price to $ 3,600 by December 23.

Key Points

  • ETH is hovering above the 100 hour moving average ($ 3,915).
  • A downtrend line has formed with resistance around $ 4,178 on the hourly chart.
  • The nearest strong support barrier is located at $ 3,600.

Ethereum rate dropped below $ 3,700 again and reached the support barrier of $ 3,600. This coincides with the 38.2% Fib, taking into account the pump, from $ 1,700 to $ 4,875. Traders began to actively buy coins, and this obstacle survived. However, the law of trading on the crypto market states that the chances of breaking through any barrier increase after each test of the barrier. Accordingly, with a high degree of probability, the bears will overcome this barrier on the fourth attempt.

The bearish trendline that emerged in early December is now at $ 4,178. But buyers are unlikely to be able to break through the $ 4,167 barrier (23.6% Fib). Consequently, within the next two sessions, the asset rate is likely to rise to $ 4,167, rebound from this barrier, and decline to $ 3,600. On Wednesday, traders bought a small amount of coins during the correction, so a reversal is not expected yet.

eth chart

Is The Bull Run Over In Ethereum Market?

Analyst Tony Spilotro said that the Bitcoin (BTC) rate has bottomed out and will rise soon. However, due to the fall in the RSI index, the bullish divergence disappeared, and after the correction, the value of the asset began to decline. Accordingly, the hypothesis of the continuation of ToTheMoon mission turned out to be incorrect.

In December, Ethereum fell in price less than Bitcoin (16% versus 30%). But the situation on the graph of the dynamics of changes in the exchange rate of the coin looks deplorable. First, due to the massive dump on December 12, the price of the coin dropped below the top of the first wave. Secondly, the Stochastic Momentum Index indicates that ETH is already in the overbought zone. Thirdly, after the correction from $ 3470, the bears again seized control of the market and continued to dump the cryptocurrency rate.

eth chart

However, it is still too early to bury bull run. The price of ETH has not yet overcome the 23.6% Fib, taking into account the pump, from $ 96 to $ 4,875. But now it is too risky to buy coins due to the long bearish trend in the BTC market. To protect yourself from financial losses, it is worth observing the change in the price of Ethereum. If within the next week the coin rate does not fall below $ 3,700, then the asset will rise in price. If this barrier is broken and a rebound from $ 3700 during the correction in the market, the downward movement towards $ 3,000 will accelerate.

eth chart

Technical indicators:

  • 4 hours MACD is in a bullish trend zone.
  • 4 hours RSI is above 50 (in the neutral zone).
  • Major Support Level – $ 3,600.
  • Major Resistance Level – $ 4,178.
  • The nearest pivot points are $ 3,902 and $ 4,153.
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