Technical Analysis for ETHUSD for 8th December 2021
Ethereum Recoils, $4.5k Remains a Strong ETHUSDT Liquidation Level
Past Performance of ETH
Ethereum prices are back in range, crucially above $4k, reversing December 4 losses.
While bullish for ETH, bears are still weak from a technical perspective.
Specifically, since ETHUSDT ranges below $4.9k and $4.5k, two key resistance lines, sellers are still in control from an Effort-versus-Results perspective.
A high-volume continuation forcing the coin above $4.5k may trigger demand. The resulting lift-off would invalidate the downtrend.
What to Expect of ETH
As mentioned earlier, price recovery doesn't expressly translate to strength.
Shrewd, risk-off traders might find entries to liquidate the pullback provided ETH is trending below $4.5k and $4.9k resistance levels.
The immediate support line is the psychological round number at $4k.
Should ETH prices contract from spot rates and $4k fall, bears would be back in contention, continuing sharp losses of early December.
Ethereum Technical Analysis
ETHUSDT prices are in range when writing, trading within a bear breakout pattern traced to early December 2021.
Despite the pullback and reversal of losses of December 4, the breakout is still valid.
It would take more strength for buyers to unwind losses and prop demand to force the coin above $4.5k for the pendulum to swing in their favor.
For now, every high may be a liquidation line for sellers setting sights on $4k and later $3.5k—last week's lows.
On the flip side, confirmation of the past two days' gains above $4.5k and $4.9k cancels the downtrend in a buy trend continuation pattern of October 2021.
Resistance level to watch: $4.5k
Support level to watch: $4k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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