02 December 2021 07:33, UTC
Reading time: ~ 2 m
Today Ethereum is down 4.6% on the day to $ 4521 and is trading below the upward parallel channel.
From a technical point of view, the ETH / USD pair is ready for a significant upward movement towards new price openings. The only move Ethereum bulls should be focusing on is breaking the immediate resistance at $ 4579, which is covered by the bottom of the bullish channel.
A breakout of the aforementioned level will bring the Ethereum price back into the ascending channel. Maintaining price movement in the channel by setting a series of highs and highs will cause the price of ETH to eventually rise to a new all-time high of $ 5,180. This would represent a 15% rise from the current price.
However, ETH will face significant resistance from the $ 4,868 level, where the average boundary of the ascending channel coincides with the ATH on November 10.
Several technical indicators support this positive outlook. The upward moving averages and upward movement of the Relative Strength Index (RSI) indicator show that ETH is in bullish hands.
In addition, on the daily chart, the Parabolic SAR and MACD indicators sent a signal to buy Ethereum. This happened on November 30, when the Parabolic SAR flipped below the price and the MACD line crossed the signal line, confirming Ethereum’s bullish sentiment.
Moreover, on-chain metrics from the Money Around Price (IOMAP) In / Out of TheBlock model show that Ethereum is facing relatively weak upward resistance.
From the Ethereum IOMAP chart, it can be seen that the immediate support around $ 4,308, covered by the 50-day simple moving average (SMA), is in the $ 4,250 to $ 4384 price range, where approximately 3.53 million ETH were bought by approximately 1.64 million addresses.
This support is robust enough to absorb any selling pressure that would push the price of Ethereum below this point.
At the same time, the RSI is showing negative divergence in relation to the Ethereum price movement, as seen on the daily chart. This means the bears have not given up on lowering ETH, possibly due to ongoing profit-taking and uncertainty around the new Covid Omicron variant, as well as significantly hawkish tapering remarks from Fed Chairman Powell.
Hence, a slide below the 50-day SMA support near $ 4,308 would trigger massive sell orders that could push ETH down to the $ 4,000 level or the 100-day SMA at $ 3,162.