Published 10 seconds ago
The Ethereum price is currently going through a minor correction and stalls its prevailing recovery phase. From the $1300 mark, the altcoin has tumbled 3.5% and shows a high possibility for further downfall. If the selling pressure persists, the sellers could retest a recently breached resistance of $1220 as a possible support, but will the price sustains above this support?
Key points:
- A higher price rejection candle at $1275 resistance suggests a prolonged downfall
- A potential down to $1220 will bolster buyers to replenish the bullish momentum.
- The intraday trading volume in Ethereum is $10 Billion, indicating a loss of 16.5%.
Source- Tradingview
A V-shaped recovery from the $1100-$1080 support surged the Ethereum price 20% higher to $1300. This bullish rally bolstered buyers to surpass some significant resistances, such as $1160, $1220, and $1275.
Furthermore, the buyers tried to sustain above the $1275 support over the past three days but failed miserably when the price plunged below it on December 3rd. Thus, the bearish engulfing candle triggers a minor correction in Ethereum’s ongoing recovery.
As of today, the ETH price is currently trading at $1257, with an intraday of 1.35%. However, the long-wick rejection attached to the daily candle indicates the price sustainability below the $1257 mark.
With sustained selling, the altcoin may plunge another 3% to retest the $1220 support. Moreover, this downfall, backed by decreasing volume, indicates the ongoing correction is temporary.
Thus, the $1257 support aligned with the 0.382 Fibonacci retracement level offers a strong footing to resume the prior recovery.
On a contrary note, the daily candle closing below the $1257 support will weaken the bullish thesis.
Technical indicator-
Relative Strength Index: the daily RSI slope failed to sustain above the neutral line, indicating uncertainty among market participants.
EMAs: the 50-day EMA assisted the sellers in reverting the prices from the $1300 mark. Moreover, the downsloping 100-and-200-day EMA accentuated an overall downtrend.
Ethereum intraday price levels
- Spot price: $1256
- Trend: Bullish
- Volatility: Medium
- Resistance level- $1375 and $1500
- Support level- $1220 and $1160
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/falling-volume-hints-the-ethereum-price-correction-is-temporary-buy-now/