Ethereum (ETH) – Confronting a crucial support zone

Ethereum (ETH) – Confronting a crucial support zone

Posted on Wednesday, December 29 2021 at 10:13 pm GMT+0000

Ethereum (ETH) has been driving downwards since posting an all-time high of 4867 on October 10th and is currently confronting the 3655-3575 section after last week’s recovery faltered in the vicinity of the 4200 mark.

This recent downside move is likely to extend as oscillators are suggesting that the negative momentum is growing. The MACD, some distance below zero, has just crossed beneath its signal line, the RSI is sloping downwards in the negative region and the stochastic lines are still negatively charged showing no signs of any waning in bearish forces.

Should the bears successfully breach the 3655-3575 base and the neighboring lower line of the descending regression channel pulled from 4867, they may initially push towards the September 23rd high at 3182 and the adjacent 78.6% Fibonacci retracement level of the September-November rally. Some distance lower, the spotlight will turn towards the September 21st bottom of 2651, which should remain intact to avoid throwing any doubt into the broader uptrend.

Otherwise, should the aforementioned support base prove strong enough to negate bearish pressures, a decisive close above the 4030-4160 zone created by the 3rd of September and the 23rd of December highs is needed to encourage buyers to pilot for the 4490 high and the 4867 peak.

In brief, Ethereum has been in a descending channel for more than a month now and is recently approaching a strong support base intending to extend the bearish correction. Only a sustained move above the 4160 level can grant buyers the upper hand.