After the price of Ether hit a new high of $4,867 on Nov. 10, interest in the Ethereum ecosystem grew, but the rally was short-lived as worldwide virus resurgence rattled the markets. As the market showed signs of recovery from the shock in the week, the overall crypto market seems to be facing headwinds on risk-off sentiment. However, the ETH position is slightly unchanged and may end the week on a conciliatory note with a solid overall gain. The ETH/USD pair holds around the $4,000 range defending much of its uptrend by its support base. At the time of this analysis, the price of Ether was rejected at $4,232 intraday high of Friday and currently trading roughly at $4,015. On Dec. 9, the Ethereum network activated the arrow glacier upgrade. According to Tim Beiko, the coordinator for Ethereum’s protocol developers, the upgrade pushes back the so-called “difficulty bomb,” which could potentially slow or freeze mining on Ethereum, to June 2022.
Key Levels
Resistance Levels: $5,000, $4,800, $4,500
Support Levels: $4,000, $3,700, $3,500
ETH/USD Daily ChartETH/USD has once again found its feet around the critical $4,000 support base after a four-week decline from the all-time high of $4,867. The steadier moving averages (MAs 50 and 200) are endorsing a more sideways market in the near term. If buyers create traction off the $4,000 range, upside friction could commence from the upper horizontal barrier at $4,250.
That said, the falling relative strength index (RSI) indicates that negative forces have yet to diminish, and the oscillators are transmitting mixed signals in directional momentum. It is yet to confirm a credible negative command in the pair. If the current trajectory endures, downside limitations may originate at $4,000, which kept sellers at bay since Nov. 18.
ETH/USD 4-Hour ChartOn the lower time frame, the position of the ETH/USD trend has remained slightly unchanged. The pair remains mainly between the resistance of $4,500 and the support zone of $4,000. The pair might most likely decline if it passes the $4,000 lower. A move below here would have no support till the $3,500 mark and the next at $3,200.
Above the 4-hour two moving averages (MAs 50 and 200), next close by resistance is the horizontal level at $4,500, and Dec .1 high level near $4,800. Overall, ETH/USD remains skewed to the upside if the price holds above the $3,900 and $4,000 mid-term consolidation zone. A drop below the $4,000 could trigger downside fears in the pair.
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