Ethereum has become volatile and indecisive after rejecting $630 to $620 area several times. Ethereum found resistance around $630 key resistance area. What is next? Bears to regain momentum in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s ETH/USD Technical Analysis.
December 4, 2020, | AtoZ Markets – Ethereum price fall today morning during the Asian session against the U.S. Dollar. Ethereum has appreciated an enormous rally in the recent week despite some shortcoming on the part of Bitcoin. The leading cryptocurrency has soared from the $500 area to highs close $630 key area. Ethereum is currently trading around $600 area and trying to push downside. The price is still residing above the dynamic level of 20 EMA on the intraday chart. As per the current price action, ETH may fill up the bullish gap of the last week in the coming days.
Ethereum Found Resistance as the Key Level Working Strongly
Ethereum is currently trading around $600 area and trying to decline. After fill-up the bullish gap of last week, Ethereum started this week with another bullish gap, which needs to be filled up also.
Image: Ethereum 4 Hour Chart
According to the 4-hour chart, Ethereum found resistance and currently trading around $600 area. As per the current price action, if the price can break below $600 area and the bullish trendline impulsively, the bears may regain momentum and decline towards $520 to $500 area again to fill-up the bullish gap.
In addition, the dynamic level of 20 EMA is currently residing below the price, which may work as strong support. On the contrary, the bears may regain momentum if the price can break below the dynamic level in the coming days. Besides, the MACD lines are currently residing above the 0.00 level and sloping downside gradually. However, the histogram has created a bearish, which indicates that bears may continue the bearish pressure further in the process.
ETH May Revert Back to the Mean
According to the daily chart, Ethereum found resistance as investors psychology working against the rally. As per the current price action, if the price can have an impulsive bearish candle close below $630 to $620 area, the bears may push the price down towards $520 to $500 area in the days ahead. So, if the price reaches $520 to $500 support area and rejects, the bulls may regain momentum and recover higher towards $620 to $630 area as a first target. The second target will be $690 to $700 area if the price breaks above $620 to $630 area in the coming days.
Image: Ethereum Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may pull the price downside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing above $500 to $520 support area, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.