ETH Market Outlook: Breaking Down the Latest Price Action and Potential Future Movements

Ethereum price prediction: Bulls fight to reclaim $3.4k, what’s next?

A recent surge in buying pressure has given bulls a glimmer of hope as they attempt to push the Ethereum price back above the critical $3.4k level. However, for this to happen, an influx of buying pressure unseen in the past month is required.

As reported on the 19th of December, the Ethereum price fell below the short-term range and dropped below the crucial $3.4k support zone. This development has led to a strong bearish momentum, with most indicators pointing towards further losses. The Relative Strength Index (RSI) plummeted below the neutral 50 mark, reinforcing the notion that the sentiment is extremely bearish.

Despite this bleak outlook, Ethereum’s price chart displays an inverse head and shoulder pattern in the two-week timeframe. If the bulls are successful in breaking out of this pattern, a potential move to $12,000 could be on the horizon.

In contrast, the daily and lower timeframes continue to display strong bearish signals. The OBV (On Balance Volume) has been stagnant over the past two months, indicating a complete lack of buying pressure. Furthermore, Ethereum’s price was unable to surpass the $4k resistance level during its previous attempts in November. This rejection led to a retracement back to $3.3k.

The $3.4k level that was previously considered support has now flipped to become a significant resistance zone. The 4-hour chart highlights crucial levels of support and resistance that traders should be cautious about, with the $3,555 and $3,101 zones serving as immediate price movement determinants.

While there is potential for Ethereum’s price to bounce back to $3,314 in the lower timeframes, this may not be enough to shift the daily momentum. Therefore, the absence of buying pressure over the past month remains a major obstacle for bulls looking to reclaim the $3.4k level.

Source: ambcrypto.com