Ethereum price analysis shows Ethereum (ETH) has staged a bullish reversal over the past few trading sessions, but technical indicators are hinting that bulls may be running out of steam. The world’s second-largest cryptocurrency by market capitalization closed yesterday at $1,277.56 and rallied toward $1,29.96 today before pulling back to $1,279.10 at the time of writing.
At the moment, Ethereum is caught in a sideways trading pattern as investors grapple with conflicting signals from technical indicators. On one hand, bullish momentum appears to be fading and a bearish divergence has formed between the price and the RSI on higher timeframes like the 4-hour chart. In addition, there is a support zone marked by $1,115-$1,125 that could help propel prices back toward $1,300 if bears do not gain an upper hand in the price action soon. On the other hand, ETH is still above the key support of $1,100 and the daily chart shows a bullish bias with higher lows.
Looking ahead, Ethereum price analysis shows that there are a few major catalysts in play for the rest of this weekend. The weekly candle has closed bearish from last week’s trading session, suggesting that investors might be reticent about placing new long bets at current levels.
Ethereum price analysis on a 4-hour chart: Sideways trading pattern
Ethereum price analysis on a 4-hour chart shows ETH is trading inside a sideways pattern as both bulls and bears jostle for position. The chart shows that there is immediate support at $1,115-$1,125, which could be a floor if prices dip lower in the short term. In addition, the RSI on this time frame has been steadily falling in the last 4-hours, suggesting that bears could be gaining ground.
The technical indicators on a daily chart are more bullish as ETH continues to trade above the important $1,100 support level. A bullish crossover between moving averages also signals that there is scope for gains in the short term. That being said, Ethereum price analysis shows that investors will be closely watching the weekly candle close later on Saturday and any sign of bearish momentum could keep prices in a tight range.
Ethereum price analysis on a daily chart: A bullish bias
The daily chart for ETH shows that there is a bullish bias in place with higher lows despite recent volatility. The long upper wicks and short lower wicks on previous trading sessions have formed a shooting star, which is a technical indicator suggesting that buyers could be losing control. The immediate support for ETH at $1,100 suggests that downside risks are growing with every passing day.
Technical indicators like the RSI and Stochastic are suggesting that bullish momentum may be waning, which could signal a potential bearish break in the near future. In order to regain its upward momentum, Ethereum will need to break out of its current range and establish support at higher levels. Some possible upside targets include $1,275 and $1,320. However, if the bears manage to push prices below $1,100 again, investors should prepare for a further sell-off toward the next support level of $1,100.
Ethereum price analysis conclusion
Ethereum price analysis for today shows the bulls are still in control, but a bearish break could happen at any time. As the weekly candle close nears, investors will be closely monitoring supply levels at $1,275 and $1,120 in order to maintain their positions. Overall, the market is still in bullish territory with potential upside targets above $1,300 being a realistic possibility.
While waiting for Bitcoin to move further, see our long-term price predictions on Chainlink, VeChain, and Axie Infinity.
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Source: https://www.cryptopolitan.com/ethereum-price-analysis-2022-12-02/