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Ethereum price prediction: Bulls fight to reclaim $3.4k, what’s next?
An influx of buying pressure, not seen in the past month, is desperately needed to revive bullish hopes for Ethereum (ETH). The cryptocurrency has been under immense bearish pressure, with the price falling below the crucial $3,509 mark on December 19th.
As the chart suggests, the momentum and structure were overwhelmingly bearish on the daily timeframe. The lack of buying pressure over the past month was a concerning sight. However, Ethereum has formed an inverse head and shoulder pattern in the two-week timeframe, which is a strongly bullish sign for higher timeframes. If this pattern witnesses a bullish breakout, it could potentially take the Ethereum price to $12,000.
The daily chart and lower indicated that sentiment was strongly bearish. The price lost its short-term range and fell below the crucial $3,400 support zone. Based on momentum, more losses appeared likely.
A bearish structure and support failure were evident on the chart. The drop in price below $3,509 on December 19th signified a bearish market shift on daily charts. This was accompanied by an RSI (Relative Strength Index) drop below the neutral 50 mark. Additionally, the On Balance Volume (OBV) has been ranging over the past two months.
These findings support the idea that more losses are imminent for Ethereum.
Furthermore, the $3,400 former support zone has flipped to resistance. The OBV did not display significant gains in the second half of November either. The OBV formed a range from November 14th to December 19th. In this period, Ethereum’s price tested the $4,000 resistance from $3,000 and faced rejection, only to retrace back to $3,300.
This suggests that there is no buying pressure and we are witnessing a bearish trend instead.
On the 4-hour chart, key levels have been highlighted for Ethereum market participants to take note of. These include the $3,555 and $3,101 levels, which will dictate the direction of the next price move.
It’s also important to note that in the lower timeframes, the $3,314 level served as support and could potentially see a 3.4%-5.8% price bounce. However, this may not be enough to turn the daily timeframe bias bullish.
What is clear is that an influx of buying pressure, absent in the past month, must be seen for Ethereum’s price prediction to regain bullish hopes.
Source: ambcrypto.com
