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Ethereum Price Analysis: ETH sets another higher low at $3,800, break higher to follow?


www.cryptopolitan.com 20 December 2021 18:42, UTC
Reading time: ~2 m

  • Ethereum price analysis is bullish today.
  • ETH/USD set another high low today.
  • The consolidation range continues to tighten.

Ethereum price analysis is bullish today as we saw another higher low set this morning. Therefore, we expect to see ETH/USD break higher later in the week and finally break a higher high.

Ethereum Price Analysis: ETH sets another higher low at $3,800, break higher to follow? 1
Cryptocurrency heat map. Source: Coin360

The market overall has seen mixed results over the last 24 hours. The market leaders, Bitcoin and Ethereum, are both in the red, with a loss of 2.13 and 2.67 percent. Meanwhile, Hex (HEX) is the top performer today, with an increase of over 25 percent.

Ethereum price movement in the last 24 hours: Ethereum finds resistance at the descending trendline, retraces lower

ETH/USD traded in a range of $3,759.40 – $3,989.31, indicating a moderate amount of volatility over the last 24 hours. Trading volume has increased by 20.45 percent, totaling $19.65 billion. Meanwhile, the total market cap trades around $454.88 billion, resulting in a market dominance of 21.21 percent.

ETH/USD 4-hour chart: ETH looks to set another higher low around $3,800?

On the 4-hour chart, we can see a strong push lower overnight result in a spike slightly below $3,800, likely meaning another higher low has been set.

Ethereum Price Analysis: ETH sets another higher low at $3,800, break higher to follow?
ETH/USD 4-hour chart. Source: TradingView

Ethereum price action has seen a steady decline over the past weeks. After a strong selloff on the 4th of December, a new swing low was found around $3,600.

From there, ETH/USD managed to reclaim 25 percent as it set a major lower high at $4,500. Over the following weeks, ETH slowly traded lower, reaching towards the previous low by the 13th of December.

A clear descending trendline of resistance was established along the way, indicating a strong bearish market structure. However, Since last week, we have seen the Ethereum price action set higher lows, meaning that the trading range is currently rapidly decreasing. Therefore, a break higher could be finally seen over the next days as sellers are finally exhausted.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bullish today as we expect more upside to follow after a quick spike below $3,800. Likely ETH/USD is now ready to finally set a higher high, breaking above the several-week descending trendline.

While waiting for Ethereum to move further, see our articles on Pi Wallet, Electrum Wallet, and Celsius Wallet.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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