Ethereum has become volatile and corrective after bouncing from $540 to $550 support level. Ethereum dropped below $600 psychological area. Can bulls regain momentum in the days ahead? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
December 25, 2020, | AtoZ Markets – Ethereum price rose today morning during the Asian session against the U.S. Dollar. Ethereum and Bitcoin went through a solid drop recently following quite a while of consolidation. Ethereum nose dive from the $590 area to lows around $550 area, plotting a solid decrease for the cryptocurrency that had profited such a great amount from the ETH2 launch. Ethereum was declining close by BTC. The market was apparently declining because of the U.S. dollar bouncing. Ethereum is currently trading around $595 area and trying to recover higher. As per the current price action, ETH may face strong resistance at the dynamic level of 20 EMA on the intraday chart in the coming days.
Ethereum Dropped Below as the U.S. Dollar Gained Momentum
ETH is currently residing near $595 area and trying to push upside. Moreover, the bulls are still holding the bullish bias above the Kumo cloud on the daily chart.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum dropped below and currently trading around $595 area. As per the current price action, if the price can break above $590 to $600 resistance area with an impulsive bullish candle, the bulls may recover upside towards $650 to $680 area in the process. Alternatively, if the price rejects $590 to $600 area with an impulsive bearish candle close, the bears may sustain the bearish pressure towards $550 to $540 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. So, the bulls may regain momentum if the price can break above the dynamic level in the coming days. Besides, the MACD lines are currently residing below the 0.00 level and may have a bullish crossover. Also, the histogram has created a bullish divergence. Both are indicating that the bulls may regain momentum in the process.
ETH Bulls Are Still Optimistic
According to the daily chart, Ethereum dropped below, but the overall bias is still bullish. As per the current price action, if the price pushes further upward and had an impulsive bullish candle close over $590 to $600 area, the bulls may push the price upward towards $650 to $680 area as a first target. The second target will be $740 to $750 area if the price breaks above $650 to $680 area in the days ahead.
Image: Ethereum Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. So, the dynamic level may act as strong support to push the price upside. Besides, the Kijun line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing above $540 to $550 psychological support area, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.