Ethereum price prediction: Bulls fight to reclaim $3.4k, what’s next?

The structure and momentum of ETH were bearish on the daily chart.
The lack of buying pressure over the past month was a concerning sight.

As a seasoned crypto investor with years of experience under my belt, I have witnessed the rollercoaster ride that is the Ethereum market. The structure and momentum of ETH over the past few days have been bearish on the daily chart, a sight all too familiar to those who’ve navigated these digital waves for long enough.

The lack of buying pressure over the past month has been concerning, with the price action failing to hold above the $3.4k support zone. The inverse head and shoulder pattern that formed in the 2-week timeframe was a promising sign, but it seems the bearish forces have overpowered it for now.

If you’ve invested in cryptocurrencies for as long as I have, you learn to expect the unexpected. The market can be unpredictable at times, and the current bearish structure and support failure are reminders of that. However, if history is any guide, we know that bull markets always return eventually.

Looking at the 4-hour chart, the immediate levels of support and resistance at $3,555 and $3,101 are crucial for ETH market participants to keep an eye on. The potential bounce from the $3,314 level could be a temporary reprieve, but it’s unlikely to turn the daily timeframe bias bullish without renewed buying pressure.

So, here I stand, weathering the storm and waiting for the next wave of buying pressure to revive bullish hopes in Ethereum. As always, crypto investing is like watching a comedy show – you never know what’s coming next! The only thing certain is that it will be an interesting ride.

As an analyst, I’ve observed that Ethereum [ETH] has developed an inverse head and shoulder pattern over a two-week span. This is generally considered a very optimistic sign for longer durations. If this pattern successfully breaks out in a bullish manner, it could potentially propel the Ethereum price up to $12,000.

In simpler terms, during the day, we saw a strong negative attitude towards the market. The price dropped out of its recent trading range and fell below the $3.4k level that was considered as a support. Given the current momentum, it seems probable that further declines may occur.

Bearish structure and support failure

On December 19th, when the price dipped under $3,509, it indicated a change towards a bearish trend in the daily market charts. Simultaneously, the RSI fell below the 50-neutral level. Over the last two months, the On-Balance Volume (OBV) has remained relatively stable.

These results suggest that further setbacks may be on the horizon, as the previous area of $3.4k has now transformed into a point of resistance. Furthermore, the On-Balance Volume (OBV) didn’t demonstrate substantial increases during the latter part of November.

For approximately six weeks between November 14th and December 19th, the OBV (On Balance Volume) established a price range. During this timeframe, Ethereum’s price attempted to break through the resistance at $4k, starting from around $3k, but was met with rejection, causing it to drop back down to $3.3k. This suggests a downtrend and a decrease in buying interest.

The 4-hour chart marks key levels for the Ethereum price

Pay attention to these crucial levels of support and resistance in the Ethereum market: if the price goes above $3,555 or falls below $3,101, it will determine the future trend’s direction.

Read Ethereum’s [ETH] Price Prediction 2024-25

On smaller timeframes, the $3,314 level functioned as a base and may trigger a 3.4% to 5.8% price increase. Yet, this might not change the overall daily trend to bullish. A significant buying force, missing in the last month, is necessary to reignite optimistic expectations.

2024-12-31 16:07

Bearish structure and support failure

The 4-hour chart marks key levels for the Ethereum price

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