Ethereum price recovers as the demand for the no. 2 crypto jumped ahead of the vacation session in the prior day to $4,157. The overall crypto markets might continue to face a range of uncertainties as they head into the holiday when lower trading volumes can amplify volatility and panic selling can occur more easily. As Ethereum soars above $4,000 on Friday, inflows accelerated dramatically, implying that large-volume investors aim to profit at the upper end of the current range. ETH upside pressure may continue to build towards the daily moving average (MA 50) as Ether defends much of its uptrend by its support base at $4,000. At the time of writing, ETH/USD is trading at $4,130 after hitting intraday highs of $4,138. The ETH price has enjoyed a solid price in the run to Christmas, but it now appears to be turning to run out of fuel and is forming a point of rejection, with investors cashing out and withdrawing their funds, partly to reduce risk during the holiday season.
Key Levels
Resistance Levels: $4,800, $4,500, $4,250
Support Levels: $4,000, $3,700, $3,500
ETH/USD Daily ChartTrading the end-of-year markets can be incredibly challenging. The ETH/USD pair is no different and on one hand, the markets may be unusually calm, as many large money funds have completed their year’s trading. There is a possible long opportunity for Ethereum price with an entry at $4,200, a stop loss at $3,700, and a profit goal of $4,500 on the long side of the market.
On the downside, $4,000 serves as an initial support level. ETH had found buyers at the $3,700 region and now trades above $4,000. There have been several attempts at this important support point and it indicates a strong desire to keep the price stable as it corresponds with the ascending trendline. Ahead is the daily moving average (MA 50) acting as a significant barrier.
ETH/USD 4-Hour ChartThe price of ETH/USD has passed the support of the 4-hour moving average (MA 50) around $3,970 in the prior day. However, the price almost immediately found resistance in the moving average (MA 200) on Friday, which kept the no. 2 crypto in range until now. Although the price is approaching its short-term resistance at $4,150.
If the 4-hour moving average (MA 200) is breached, the price approaches the horizontal zone at $4,250 before aiming at the higher line of a channel up pattern near $4,500. Meanwhile, the RSI’s near overbought situation may cause a temporary pullback. Overall, the sentiment would remain upbeat as long as the price action is above $4,000.
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