Price Analysis

Ethereum Lacking Momentum Above $4000 Yet ETH Bears Have No Room

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Dec 10, 2021

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Highlights

    Ethereum price is on the verge to shed huge gains and plunge below $4000 yet again

    The technicals showcase a bearish divergence that may impact the price to trend towards the south

    Despite the downtrend, yet the asset still showcases the possibility of the bulls re-entering the ring again very soon

Ethereum price sustained above $4000 amid multiple bearish divergences in the recent past. No doubt the asset revisited the levels below this level a couple of times, it quickly rebounded and manifested the strength in the rally. But currently, the ETH price is gradually falling apart and revisiting below $4000 currently may imply the consolidation between $3800 to $3950 could be fast approaching. 

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Where Ethereum (ETH) Price is Heading Next ?

The ETH price for a month is hovering around $4500, yet never opened the day’s trade on a bearish note at the levels around $4100. And hence the current trend haunts the rally to drop below $3900 and consolidate for a while. The present day’s candle is scarier as currently, bulls remain passive and buying is almost negligible. Despite multiple negative scenarios, yet the bears may not have much room to flourish. 

  • The Ethereum price broke down the trend line in the early trading hours and tested the $4000 support levels
  • If these levels are not held strong, then the asset may plunge down towards the next support just below $4000 at $3900.
  • Yet the strong support zone resides in between $3854 and $3811, which may hold the price and help to accumulate some strength 
  • The RSI has bottomed below the average levels and trying to rise but failing since the early trading hours
  • On the other hand, MACD displays negligible buying but selling has also not mounted. And hence a rebound may be possible only if the bulls enter as bears are also passive

Collectively, Ethereum after undergoing a sustained rally may experience a pullback. However, the pullback may not be a massive one compared to that of the other assets like Bitcoin or Solana or Dogecoin. Yet each drop may be a good opportunity to accumulate more as ETH price could shoot up very soon and end the yearly trade forming a new ATH. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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