• Ethereum price has shown resilience as it quickly recovered from the recent crypto market crash.
  • ETH has outperformed Bitcoin and has reached a three-year high on the ETH/BTC chart.
  • A prominent crypto analyst suggested that investors are using Ethereum as a hedge.

Ethereum price has been standing out from other cryptocurrency assets, as Bitcoin and most altcoins have been struggling to recover from the recent losses. Although the second-largest cryptocurrency by market capitalization crashed to a low of $3,400 over the weekend, ETH is holding firmly against BTC, reaching a three-year high on the ETH/BTC chart.

Ethereum dwarfed losses against Bitcoin

Ethereum price has reached a three-year high on the ETH/BTC chart on December 5, reaching 0.857 BTC, the highest level seen since May 2018. Despite the market collapse on December 4, the layer 1 token recovered most of its losses, while Bitcoin and other altcoins are struggling to move higher.

ETHBTC

ETH/BTC 12-hour chart

According to prominent crypto analyst Crypto Birb, “it seems that investors are taking ETH as a hedge here,” as Ethereum recovered quickly against BTC. 

Lukas Enzerdorfer-Konrad, the chief product officer at Bitpanda stated that the ETH/BTC monthly close in November was the best one in almost four years and that the bulls could continue to have “some power left for an additional run.”

Ethereum price to face stiff hurdle at $4,300

Ethereum price managed to reclaim a critical support level at $4,000, suggesting that ETH has shown strength and appears ready to tag higher levels. 

The first obstacle for Ethereum price appears to be at the 78.6% Fibonacci retracement level at $4,211. ETH will face a challenging hurdle at $4,323, where the 21, 50 and 100 twelve-hour Simple Moving Averages (SMAs) converge. If the token manages to slice above this level, the bulls may be incentivized to target the November 26 high at $4,551 next.

Bigger aspirations will target the all-time high at $4,868 and Ethereum price may be prepared for lift-off toward the 127.2% Fibonacci extension level at $5,762.

ETHUSDT

ETH/USDT 12-hour chart

However, investors should note that Ethereum price must stay above the psychological level at $4,000 for the bullish outlook to be validated.

The first line of defense for Ethereum price is at the October 28 low at $4,115, then at the November 22 low at $4,022. If selling pressure increases, ETH may fall toward the support trend line $3,914 before sliding lower to meet the 200 twelve-hour SMA at $3,865.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Polygon (MATIC) price action has been on treading nervously this week, with weekly earnings switching back and forth between profit and loss. It all comes down to trading this Friday to see if bulls can eke out a winning week.

More Polygon News

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

Shiba Inu price positively reacted to the United States inflation report, forming a bullish candle on its daily chart. The second-largest meme coin brushed shoulders with $0.00001287 but pulled back to test support highlighted by the 100-day Simple Moving Average (SMA) at $0.00001170.

More Shiba Inu News

CRO price sees bulls using their last ammunition to attack $0.16

CRO price sees bulls using their last ammunition to attack $0.16

Crypto.com Coin (CRO) price action is looking to execute a bullish breakout above $0.16. Ignorant bulls will try to be part of that rally, but that could prove a big mistake as a few risks need to be taken into account to be sure that this rally still has legs.

More Crypto.com News

Solana traders’ focus on $58 as the rally starts to slow down

Solana traders’ focus on $58 as the rally starts to slow down

Solana (SOL) price action is set to close out the week with a mere 7% gain depending on where it ends  Friday evening after the US closing bell. Overall it has been a good trading week from a fundamental perspective and technicals in a supporting role.

More Solana News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP