Ethereum [ETH] Price Analysis: Bearish Momentum Persists as Support Fails
Ethereum [ETH] has been facing a bearish outlook on the daily chart, with a lack of buying pressure over the past month raising concerns among investors. The cryptocurrency recently formed an inverse head and shoulder pattern on the 2-week timeframe, signaling a bullish trend for higher timeframes. If this pattern sees a breakout, Ethereum’s price could surge to $12,000.
However, the daily and lower timeframes paint a different picture, with sentiment leaning heavily towards bearish. The price has broken below the $3.4k support level and lost its short-term range, indicating a potential for further losses in the near future.
The structure of Ethereum’s price on the 1-day chart shows a clear bearish trend, with a drop below $3,509 marking a shift in market sentiment. The Relative Strength Index (RSI) also dropped below the neutral 50 mark, while the On-Balance Volume (OBV) has been range-bound for the past two months. These indicators suggest that more losses could be on the horizon, as the $3.4k support-turned-resistance zone may hold strong.
The lack of significant gains in the OBV in the latter half of November further supports the bearish outlook for Ethereum. The cryptocurrency faced rejection at the $4k resistance level, retracing back to $3.3k, indicating a lack of buying pressure and a potential downtrend.
On the 4-hour chart, key support and resistance levels for Ethereum’s price are highlighted, with $3,555 and $3,101 being crucial levels to watch. These levels will likely dictate the direction of the next price move, with a break below $3,101 potentially leading to further losses.
In the lower timeframes, the $3,314 support level could see a minor price bounce of 3.4%-5.8%. However, a sustained bullish trend would require a significant influx of buying pressure, which has been absent in the market for the past month.
In conclusion, the bearish momentum in Ethereum’s price is likely to persist in the near term, with key support levels being tested. Investors should exercise caution and closely monitor price movements to make informed trading decisions.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. It is solely the opinion of the writer.
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