Amid recent declines in the global market, overall cryptocurrency positive sentiment recovered in the prior day as the Omicron scare continues to ease, supporting risk markets such as Ether. Nevertheless, Ethereum was holding below $4,000 in the session as cryptocurrencies limp into the last day of the year. According to CoinMarketCap data, ETH, the no. 2 largest cryptocurrency, was trading at $3,659, nearly 2.5% over the last 24 hours. It has dropped about 10% in recent 7 days. Ether reached an all-time high of $4,867 on Nov. 10. The Ethereum dominance index rose to 21.2% in 2021, acquiring more “territory” from Bitcoin, which saw its market share drop to 40.6%. BTC had a market share of 71.86% at the start of the year, while ETH had a share price of 10.63%. According to WhaleAlert, roughly $262 million in ETH tokens were transferred to Binance as of Dec 8. Investors’ transfer of tokens to exchanges may contribute to price swings and selling pressure.
Key Levels
Resistance Levels: $4,500, $4,250, $4,000
Support Levels: $3,500, $3,200, $3,000
ETH/USD Daily ChartAt the year’s end, Ether’s price is yet to reach its psychological support at $3,500 and continues to hover around this region. The price broke the $3,700 level to move into a near-term consolidation zone. Besides, there was a break above the $3,800 level during the session. However, the price is unable to clear the $3,800 zone and now corrects lower.
The ETH/USD pair is trading near its oversold region as seen on the daily RSI and is 20 points lower than December’s high of 57. The moving average (MA 200) is flat, a sign that the pair could continue moving sideways as volatility eased. There is a likelihood the pair will move lower to probably the $3,500 level.
ETH/USD 4-Hour ChartDespite falling on the 4-hour time frame, the ETH/USD shows an incomplete bearish sequence. As a dominant position, the short-term trend is predicted to fall to $3,500, or swing more to the downside. The alternative approach predicts a shortened decline to Dec. 28 low. Although it is not the primary view, the shortened outlook is also possible.
The current RSI shows no momentum divergence suggesting it’s likely to continue higher. On the upside, the price faces resistance near the $3,800 level. The next resistance is at the $4,000 level, above which the price could rise towards the $4,500 level. The short-term oscillators show no clear signs that the downside drive is weak.
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