• Ethereum price action shows little has changed from the open.
  • Inside bar on the daily chart can present opportunities.
  • The price range for a breakout trade in either direction is tight.

Ethereum price action is very constricted during today’s trading. A primary reason for this consolidation goes beyond the volatility of yesterday’s trading. There is a very tight $100 range above and below the $3,400 value area where Ethereum has a near equal opportunity to surge higher or plummet lower. 

Ethereum overall trend favors the bulls, but bears have a strong case for a sell-off

Ethereum bulls have several technical factors favoring a resumption of the prior uptrend - the most important is the Chikou Span remaining above the candlesticks. The Relative Strenght Index is parked right on top of the first oversold condition in a bull market (50). The Composite Index has an almost imperceptible hidden bullish divergence level. To fulfill an apparent resumption of the move higher and move to new all-time highs, bulls need to push Ethereum’s price to a close above $3,530.

There will be a likely test of new all-time highs if bulls break the near-term resistance, setting up for a test of $5,000 and even higher

ETH/USD Daily Chart

Bears need to push Ethereum below $3,400. There is a significant volume trough in the Volume Profile between $3,400 and $3,000. The most important technical indicator that will display a clear likelihood of lower prices is the Chikou Span closing below the candlesticks, which is right on the $3,000 Ethereum price level.

Unless something dramatic happens near the end of the trading day, Ethereum looks poised to maintain a very constricted trading pattern. If the current daily high ($3,540.10) and low ($3,218.20) remain, then tomorrow’s trading setups will be established according to the inside bar formed today. Bulls will have a very bullish entry above today’s high, but bears will need to target an entry below the Tuesday low ($3,026.00)

Ethereum bulls will find primary resistance at $3,900, while Ethereum bears will find strong support against the top of the Cloud (Senkou Span A) at $2,288.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bank of America bullish comments on metaverse push Axie Infinity and Sandbox closer to breakout

Bank of America's strategist made bullish remarks about the metaverse, triggering a spike in interest in Axie Infinity and Sandbox tokens. The rices of the two metaverse tokens continue climbing with increased interest from investors. 

More Axie Infinity News

Polkadot price ready to breakout after DOT forms double bottom

Polkadot price began turning around and moving higher on November 28. It is currently resting on support after a brief pull-back, with the potential for using this floor as a launchpad higher. A resumption of the bullish impulse will provide fresh confirmation for the new uptrend.

More Polkadot News

Bitcoin Weekly Forecast: The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

More Bitcoin News

Berkshire Hathaway’s Charlie Munger wants US to ban cryptos like China

Charlie Munger considers cryptocurrencies bad for people and backs China on its cryptocurrency ban.In his previous interviews, Munger has shed light on the concept of “speculative excess” and “asymmetry of wealth.” 

More Cryptocurrencies News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!