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Technical Analysis for ETHUSD for 5th January 2022

Ethereum Pinned Below $4k, Strong Fundamentals Fan ETH Demand

The CTO of Coinbase, Surojit Chatterjee, is positive of more scaling enhancement on the pioneer smart contracting platform.

Past Performance of ETH

There are hints of strength, but this is not to endorse buyers. ETH bulls are building on last week's solid base at press time, printing higher highs relative to the lower BB. ETH prices have solid support at around $3.6k.

Ethereum Technical Analysis

Though Ethereum's fundamentals support more upside, ETHUSDT prices are trailing below the middle BB—a sign of weakness. At spot rates, Ethereum prices are still within a bear breakout pattern and within the wide-ranging bear bar of December 4. Furthermore, there is a bearish divergence pattern as ETH prices inch higher while trading volumes shrink. Considering this formation, risk-averse traders may find more entries above $4.2k and liquidate if ETH falls below $3.6k, confirming losses from early November 2021.

What to Expect of ETH

A close above $4.2k would swing ETHUSDT back to bullish ways, completely reversing losses of early December. Ideally, the reversal bar ought to be with high trading volumes. Conversely, losses below $3.6k may force further liquidations as bears take charge, targeting $2.7k—or lower.

Resistance level to watch: $4.2k

Support level to watch: $3.6k

Disclaimer: Opinions expressed are not investment advice. Do your research.

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