Ethereum Nose Dive Below $550 Area – Will Decline Further?

Ethereum bears have regained momentum after rejecting $635 to $620 key area. Ethereum nose dive below $550 psychological support level. Will ETH decline further 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 11, 2020, | AtoZ Markets – Ethereum has been intently following the price action seen by BTC and other major altcoins. However, it has had the option to evade seeing any extreme decay overnight. In spite of the fact that it plunged as low as $530, the cryptocurrency’s support at this level illustrates a “V-shaped” recuperation that permitted it to climb up towards the upper $500 area. Ethereum is currently trading around $545 area and trying to push downside. After bouncing from $500 to $510 support area, the bulls pushed the price upside with a bullish gap last week. As per the current price action, the price may face strong support around $500 to $510 area again in the days ahead.

Ethereum Nose Dive as Bulls Failed to Hold the Momentum Above $620 Area

Ethereum is currently residing near $545 area and trying to push downward. However, the price is still fighting to break below the dynamic level of 20 EMA on the daily chart.

Ethereum Nose Dive

Image: Ethereum 4 Hour Chart

According to the 4-hour chart, Ethereum nose dive and currently trading around $545 area. As per the current scenario, if the price can have an impulsive bearish candle close below $540 area, the bears may push the price down towards $510 to $500 area again in the coming days.

In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. Also, the price has broken below the Kumo Cloud, which is also another indication of the bearish continuation.

ETH Bulls Are Still Optimistic

According to the daily chart, Ethereum nose dive as the price requires a retracement. As per the current price action, if the price breaks below the dynamic level of 20 EMA with a daily candle close, ETH may retrace towards $510 to $500 area in the days ahead. So, if the price retraces towards $510 to $500 area and bounced upside, the bulls may sustain the bullish bias further towards $570 to $580 area as a first target. The second target will be $620 to $635 area if the price break above $570 to $580 area in the process.

Ethereum Nose Dive

Image: Etheruem Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing near the price. So, the price may break below it to retrace further downside. Moreover, the Bollinger Bands middle band is currently residing below the price. It may work as strong support to push the price higher. Also, the RSI line is currently residing below the overbought level 70 and gradually sloping down. It also indicates that the price may retrace further down in the days ahead.

To conclude, as long as the price residing above $510 to $500 support area, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days. 

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