Ethereum violates critical support, but can it keep this move?

For Ethereum, it was observed earlier this week that the USD 4,050 area is an important level and USD 4,121 could also create resistance. The price actually climbed to meet resistance at $ 4,120 after breaking above the descending trendline.

Bitcoin also looks like it still has some steam left, and could hit the $ 53,000 to $ 54,000 range. It can be very difficult for the cops to get higher in one attempt. For Ethereum, a surge above $ 4000 is encouraging and a retest of the same range should be bought back to reveal more upside opportunities.

The price broke the $ 4,000 mark, a resistance area from the September high, and then retested. The price has also broken out of a downtrend (in white) since the beginning of December.

The 23.6% Fibonacci retracement level was held as resistance on the first test. Things weren’t entirely in the cops’ favor, however. Trading volume has declined despite the price spike above $ 4000 and a collapse in the downtrend.

The indicators show that the momentum is increasing, but the strong demand is not yet fully realized.

Theoretical basis

OBV forms a triangle pattern. Movement outside of that triangle is likely to indicate the next direction Ethereum will take, regardless of whether buyers or sellers take control. The RSI has also made higher lows in the past few days and finally broke above the neutral level of 50.

With things stable, ETH price has stayed above significant levels but is still facing resistance at $ 4,121 with $ 4,350- $ 4,450 being another area of ​​supply. The purchase volume must support any further uptrend, otherwise market participants will begin to sneak out the movement.

Inference

The price development tells a bullish story, but the volume is low, possibly due to the Christmas season and people’s unwillingness to take too high a risk. Therefore, further clarification is needed. Bitcoin is also likely to move up slightly, but is facing significant resistance. A rejection and retracement for Bitcoin near the $ 54,000 mark could wipe out much of ETH’s recent gains.