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Monday, December 19, 2022

Ether: higher highs and lower lows

Ether: higher highs and lower lows

Ethereum / U.S. dollar BITSTAMP:ETHUSD

For some unknown reason, ETH continues to be punished by the market. It seems like the market has lost confidence in this coin, but it still holds a belief that something might be changed in the future. From all altcoins on the market, ETH lost the most of its value in nominal terms, even $11B on a weekly basis. Like with all previous significant drops in ETH`s value during this year, it is highly questionable why such market moves happen, especially taking into account the widespread use of Ethereum blockchain within various industries. For one more time it could only be drawn saying that the market is always right.

Since the beginning of November, the price of ETH was struggling to hold around $1.3K resistance line. At the beginning of the previous week, ETH managed to reach its highest weekly level at $1.350, however, soon the coin reverted back, erasing all the gains and ending the week modestly above weekly lowest level at $1.150. ETH was not able to sustain even a $1.2K support line. The RSI indicator reverted to down side after reaching level of 56 at the beginning of the week. It is currently at level of 40 , indicating that investors are still not ready for a push toward the overbought side of the market. Regardless of recent moves, the moving averages of 50 and 200 days are still moving in a downtrend as two parallel lines.

During the week the price of ETH was pushed to the levels below the $1.2K support line, which opened a road on a chart for the price to reach $1.0K support line. Although there is low probability for such a move, still charts are pointing to this level. There is higher probability at this moment for ETH to return to the levels above the $1.2K support line, but with low probability for $1.3K to be tested again.

from TradingView Ideas

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