Ethereum (ETH) – Bulls testing the 20-day EMA

Ethereum (ETH) – Bulls testing the 20-day EMA

Posted on Tuesday, December 7 2021 at 8:41 pm GMT+0000

Ethereum (ETH) bounced off the 100-day exponential moving average (EMA) and is currently challenging its 20-period EMA, which together with the token’s successive higher highs and higher lows reflect an overall bullish outlook.

Oscillators are also suggesting that the positive momentum is picking up. The MACD is slightly in the negative region but is flattening below its red trigger line indicating that negative forces are somewhat subsiding, while the positively charged RSI is at its equilibrium level and has lots of room for potential gains.

Should the price solidify its ground above the 20-period exponential moving average, the bulls might then target the 4780 – 4870 zone formed by the 1st of December reaction high together with the all-time high. Surpassing that level could pave the way towards the regression channel upper line around 5500 before challenging the 161.8% Fibonacci extension at 6807.

Otherwise, if buying powers subside, initial support could be in force near the 23.6% Fibonacci retracement level coinciding with the channel’s support line close to 4100. Breaking through this barrier, bearish momentum could build up sending the price to test the subsequent support area of 3660 represented by the 38.2% Fibonacci retracement level matching September 16th and October 8th reaction highs.