Chart by TradingView
Key Support level: $3,969
Key Resistance level: $4,460
The bulls are attempting another break above the all-time high after the shakeout from 27th October which saw the market take downturn. After the short-lived correction last week, ETH recovered quickly and has maintained a price above the $3,969 support level. This is a show of strength from the bulls and the bears need to return in force if they stand any chance of reversing this momentum.
Trading Volume: The recovery from the breakdown last week was on good volume and it has maintained steady since. A push above the all-time high can lead to an explosion in volume and volatility equally.
RSI: The RSI has maintained its level just under 70 points on the daily timeframe which leans on the bullish side. This shows strength and as soon as a breakout takes place, the RSI can spike in the overbought area where it can stay for quite a while if a new rally starts.
MACD: The histogram and the moving averages are bullish on the daily timeframe, however, further delay from the bulls to break above the all-time high may give bears an opportunity to pull price lower and flip the MACD on the bearish side. Currently the histogram is making lower highs, which has to change soon otherwise bears can take over.
The bias on Ethereum is bullish. As long as the price remains above the key psychological level of $4,000, the bulls have a real chance at breaking above the current all-time high. Bearish bias can only be discussed if ETH closes a daily candle under this key level.
The expectation is for Ethereum to attempt a new break of the all-time high. This would propel the price quickly to higher levels such as $5,000. Until then, it might remain between the key support and resistance. However, another failure from bulls to break above the all-time high, would embolden the bears and that may lead to another sharp rejection, similar to 27th October.
