Should ETH investors prepare for $ 6,000 in December?

November was not a good month for ETH. At one point the price fell more than 9% and continued to fall throughout the month.

However, the overall view shows that the situation is not that bad. In fact, ETH achieved an ROI of 0.5% for the month, which means that even if investors invested in early November, they didn’t lose much.

This article analyzes several factors that suggest that ETH investors’ patience will pay off in the final month of 2021.

Come back from the abyss and lay the foundations

Source: trade view

One of the notable observations made over the past 30 days is that ETH continues to find support between $ 3,800 and $ 4,000. After the price hit $ 4,400 in late October, it retested that range before moving up on the chart. However, the price corrected sharply in the second half of November and collapsed significantly on November 26, which led to a renewed test of this range. This price zone was tested 5 times in the last 30 days.

Many analysts expect ETH to correct below this level after battling above $ 4,000 in the past few days. However, over the past 24 hours, the price gradually rallied back above $ 4,400.

By now worries about the possibility of an immediate correction have probably stopped and the mood is slowly turning positive.

ETH and big plans for December?

Source: trade view

The short-term ETH price chart is showing chaos, but the long-term chart seems to imply a positive uptrend. Accordingly, ETH should have a strong December before the end of 2021. The price chart has formed a cup-with-handle pattern over the past few months. In early November, the price broke out of the pattern sharply, breaking the fundamental resistance level at $ 4,000.

Hence, the correction of the past few weeks is considered a test of the decline to $ 4,000.

Finally, ETH closed above $ 4,000 on the weekly chart yesterday, underscoring the existence of a long-term bull market. So technically, if the cup-with-handle pattern undergoes a positive change, ETH has a 50 percent chance of testing new highs of $ 6,000 to $ 6,200 in December.

Green light for investors

Source: Sanbase

Regarding the on-chain indicators, ETH’s MVRV ratio indicated a buying opportunity. When the price drops to zero, it is a sign that the selling pressure is more or less gone. Historically, this has been a good time to buy based on the MVRV and the overall market is well established in that direction.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

At home at home

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page