Ethereum Price Analysis: ETH Facing Again the Critical Support, Huge Move Might Be Developing
ETH has been successful in keeping its price above $4,000. However, the upwards momentum is weak.
Key Support levels: $4,000
Key Resistance levels: $4,435, $4,868 (ATH)
ETH’s price is sitting just above the $4,000 support level with little volume or volatility. This is normal considering the weekend and the new year’s holidays. The resistance is some distance away at $4,435, and as it seems now – it likely will not be tested any time soon. Momentum might return in the coming week, before the new year’s evening, or as 2022 starts.
Trading Volume: Volume is extremely low; therefore the most likely scenario for ETH is to move sideways.
RSI: The daily RSI is curving down due to the lack of momentum. The coming weekdays will be decisive in choosing a direction for price.
MACD: The daily MACD remains bullish. However, the histogram made a lower high at the time of this writing. If bullish momentum does not return, this might be a clear warning sign that the bears may take over the price action.
The bias for ETH is neutral. Despite a price above $4,000, the momentum is simply not there to push ETH in any direction right now.
Short-Term Price Prediction for ETH
As long as ETH is trading above $4,000 is good news. This key level has to be backed up by volume and momentum – both are currently missing.
This makes the current price action very fragile. For this reason, as soon as volume and volatility return, there is no guarantee that bulls will win this fight. Best to be cautious, particularly if ETH closes a daily candle below $4,000 again.