The cryptocurrency market began a gradual recovery from the prior two days sell-off, with most cryptocurrencies trading green again on a 24-hour basis. On December 17, Ethereum (ETH) rallied to $677, its highest level since May 2018 but the price failed to hold above this level. In a strong rejection at the December 20 high of $661, Ethereum started a downward move similar to Bitcoin. Following a sell-off that saw Ethereum print two red daily closes, ETH/USD rebounds from $587 lows to trade at an intraday high of $634. Solid fundamentals and positive newsflow coupled with BTC recovery seem to be attributable to ETH rebound past $600. At the time of writing, Ethereum (ETH) is trading at $624, having gained over 3.00% daily and 7.5% weekly. Ethereum scalability may be set to improve through the ‘L2 Squared’alliance of DEXs, DeversiFi, and Loopring partner. In a recent announcement, the alliance wants to ease the transition for users into these higher performance on-chain exchanges. The alliance dedicated to promoting the usage of layer two solutions comes as the Ethereum roadmap formally incorporated a rollup-centric vision.
*In a strong rejection at December 20 high of $661, Ethereum started a downward move
*ETH/USD rebounds from $587 lows to trade at an intraday high of $634
*Ethereum scalability may be set to improve through ‘L2 Squared’alliance of DEXs, DeversiFi, and Loopring partner
Key Levels
Resistance Levels: $750, $700, $680
Support Levels: $535, $480, $450
ETH/USD Daily ChartETH/USD price slipped to intraday lows of $587 where the bulls stepped in to show solidarity. ETH consequently went on to set intraday highs of $634. Ahead of this level, the first major resistance level at $650 may likely cap any upside. In the event of an extended rally, Ethereum may test a resistance zone between $650 -$677.
A break above $677 may bring the pattern target of $700 back into play. On the flip side, if the price turns down from current levels, ETH may decline to the $600 pivot. Another key support is seen at the $590 level where the recent rebound occurred. A close below the $590 level might open the doors for a larger decline towards the $580 and $575 marks.
ETH/USD 4-Hour ChartETH reclaimed the 4-hour MA 50 resistance at $626 subsequently in its rebound. ETH price should settle above the MA 50 level past $600 to retain long term bullish bias. A breakdown below this point may push ETH price towards the MA 200 close. An extended decline below the MA 200 at $590 may invalidate the bullish outlook.
On the upside, if ETH sustains its run past $626, ETH may retest its recent high of $677 and then $700. In the long-run, ETH has the potential to hit $800. The ETH/USD pair is only bullish while trading beyond the $535 level around the MA 200, key resistance is found at the $680 and the $700 levels. If the ETH/USD pair trades beneath the $535, sellers may test the $480 and $425 prior support cluster.
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