Yesterday we noted in our Bitcoin (BTC) analysis that the volatility in the crypto market is hard to find. This also applies to Ethereum (ETH). The price has been stuck in a narrow range between roughly $2,900 and $3,000 for ten days. With the new year around the corner, it is a great time to take stock for ETH.
ETH stuck in very tight range
While the price used to fluctuate considerably up and down, we see on the daily chart that the size of the candles has decreased considerably. This indicates the decreased volatility. No surprise around the holidays.
The ETH price has been moving in a narrow range between $2,900 and $3,000 since December 20. The price has found support in the lower purple support zone three times in recent months and now appears to be consolidating above an upward trend line.
In the short term, we see clear resistance at $3,050. This is the white horizontal dotted line. If we zoom in to the 4-hour chart, the current situation can be viewed more clearly.
What will the price do?
We wrote yesterday in the BTC analysis that we can expect volatility in the crypto market again at the start of the new year. The big question, of course, is which direction this volatility will steer prices.
All in all, ETH’s price looks great at the moment with a nice consolidation in an important area. It is important to note that the price of ETH depends on what BTC does.
Still, we can speculate a bit. The bulls want to see a break of the psychological resistance level of 3,050. This would open the door to a further rise to the resistance zone around $3,400. Here the price reached a peak on December 10.
On the other hand, a decline below the uptrend line would be a bearish signal. This would lead to a test of the level around $2,800, the recent December 18 low. The price must be maintained at this level at all costs.
Source: https://newsbit.nl/gaat-ethereum-uitbreken-of-terugvallen-dit-zeggen-de-grafieken/
