With Ethereum barely keeping its head up over $4000, (with a knife-edge $3999 near press time!) analysts are trying to figure out where the coin price is going into the end of this year.
Right now, ETH is significantly down from a high of $4600 at the end of November. Before that, ETH was as high as $4400 December 7 and $4800 November 7, seeming to like those lucky 7s.
By contrast, it was as low as $2800 near the end of September and under $1800 July 19.
It’s also important to remember Ethereum started the year closer to $1000 per coin, meaning that ETH has generally risen 300% over just under one year’s time.
Now, Aayush Jindal at NewsBTC notes that ETH could undergo either positive or negative support pressures.
“Ethereum started a steady increase above the $3,950 and $3,980 resistance levels,” Jindal reports. “ETH even climbed above the $4,020 level and the 100 hourly simple moving average. Besides, there was a break above a key bearish trend line with resistance near $4,020 on the hourly chart of ETH/USD. The pair traded as high as $4,075 and is currently consolidating gains above the 23.6% Fib retracement level of the recent increase from the $3,750 swing low to $4,075 high.”
Notwithstanding what Jindal calls a “bullish trend line,” the analyst suggests there could also be a dip.
“If Ethereum fails to start a fresh increase above the $4,080 level, it could start a fresh downside correction,” Jindal posits. “An initial support on the downside is near the $4,020 level. The first key support is now forming near the $3,950 level and the 100 hourly simple moving average. The next major support is near $3,920. It is close to the 50% Fib retracement level of the recent increase from the $3,750 swing low to $4,075 high. If there is a clear break below the $3,920 support, the price could extend losses.”
With the massive growth of ETH over the last year, buy and holders may not be feeling much in terns of nervousness. But swing traders and arbitrage artists will want to understand the local price swings better.
We’ll keep you up on what ETH, BTC and others are doing as we go into the holiday season.