Ethereum (ETH) struggled to recover in the last 24 hours but a falling Bitcoin (BTC) has kept it on leash. The price started to take off and was supported by RSI conditions as well as the daily Stochastic, but weak overall market conditions resulted in a short lived rally. Considering most activity on weekends is often useless in markets like these, it is reasonable to expect that any gains made during the weekend could be wiped out in the days ahead. Ethereum (ETH) still looks bullish long term but short term; it has to fall back to the bottom of the channel to test the support line.
Daily chart for ETH/USDT shows that RSI is now facing a strong resistance and is in a downtrend. Fortunately for most crypto enthusiasts, this downtrend is about to come to an end before the end of the year. However, that is not to say that Ethereum (ETH) cannot make another low for the year. The price can definitely fall back below $400 considering market sentiment still remains heavily bearish despite positive news like Blackrock preparing to get into cryptocurrency trading. CFA exam also added a section for blockchain technology and cryptocurrencies which means exam takers will now be expected to have knowledge and understanding of cryptocurrencies like Ethereum (ETH).
Ethereum (ETH) trading volume has reached a very low level which means a lot less capital is needed to swing market either way. This is also why it becomes even easier to manipulate the market on weekends and why gains or losses made on the weekend are often insignificant in the long run. Ethereum (ETH) has remained below the psychological barrier of $500 and now faces resistance around $481. This is a strong resistance and as shown on the 4H chart above, it is likely that Ethereum (ETH) will face rejection and continue downwards from its current price of $472. RSI and Stochastic conditions are both overbought and are signaling a trend change towards lower levels.
If Ethereum (ETH) continues to fall lower from here, it is likely that a low below $400 but above $300 will become its ultimate bottom for the year. That would also mark the end of this correction and prices can be expected to rise from there with news of a strong catalyst like CBOE’s ETF being accepted or institutional investors formally getting into the game.