- Etheruem price rose by 4% following last week's 10% decline.
- ETH is 5% down on the month and trades below October’s trading range.
- A hurdle of the $1,250 zone is needed to justify aiming for $1400 and higher.
Ethereum price will be challenging to forecast as the bulls and bears spar over minute price fluctuations. Currently, the technicals lean bearish, but traders should be aware of the alternative scenario.
Ethereum price in indecision mode
Ethereum price is showing subtle signs of retaliation, but the bullish move needs time to decipher if there is potential for more gains. On December 16, the bears reconquered the shortterm narrative by producing a daily closing candlestick beneath the 8-day exponential and 21-day simple moving averages. Following the breach, the ETH price declined an additional 6% before bulls stepped in.
Ethereum price currently auctions at $1,212. The bulls prompted a 4% countertrend spike on December 20. The decentralized smart-contract token is now retesting the recently breached moving indicators, which has shorter time frame for traders hesitant to pull the trigger. Traders may also recall the low $1,200 barriers' significance as the zone supported ETH's October through November's 30% and 50% upswing moves.
Considering the scenario, a rejection from the barrier would wreak havoc on the Ethereum price as a classic breach and retest signal. The safest confirmation that the bears control the trend would be a breach of December 20's daily low at $1150.51. A second attempt at the low could induce a sweep of the lows event targeting the psychological $1000 price zone. The ETH price would decline by 13% if said price action were to occur.
ETH/USDT 1-Day
To play devil's advocate, Ethereum price is only down 5% on the month, and the countertrend surge shows bullish engulfing candle sticks on nearly all time frames. A piercing of the recently breached moving averages could send the ETH price back into October's trading range. The trading range high would be November's high at $1,680 and $1,40 being the halfway mark. ETH's ability to sustain support above the $1250 level would create the possibility to rally back into the midpoint of the range at $1400, resulting in a 15% increase from the current Ethereum price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?