Ethereum declined below the $4,000 mark over the past few days and tested the $3800 level as resistance. The $3620 mark has been tested twice already. Bitcoin dominance jumped from 39.94% to 40.22% in the hours before press time. Buyers for Ethereum were not in a position to consolidate at these levels. Well, the interesting question is, will the birth of the new year see ETH heading south as bitcoin was unable to move beyond $48.5k? Or will it show another bounce and more bite?
ETH- 1H
Yellow levels represent Fibonacci retracement levels for a larger ETH move, marking them as important levels on the lower time frame. Over the past week, we saw that ETH respected the $4121 resistance level, got rejected, and found some support at $3585 and $3620 which were near the $3660 retracement level.
$3800 has been an area of demand in the past and it was not an encouraging sign for the bulls to convert this area from demand to supply.
At the time of writing, the price was above the 23.6% retracement level, with ETH declining from $4150 to $3,585. This suggested that we could see another bounce towards $3800.
One thing to keep in mind is that the weekend has arrived, along with a big holiday. This establishes a situation of low liquidity where prices can move in either direction in a significant fashion. The December 4 sell-off comes to mind.
argument
The price has been bouncing between the $3600 and $3800 levels over the past few days. The RSI is also at neutral 50, indicating that the momentum is not in favor of the bears or the bulls on the 1-hour time frame.
It appeared that OBV recently found a temporary bottom (green) but crashed with rejection at $3800. This indicated that buyers were still intimidated while sellers dominated.
Conclusion
Ethereum is not presenting a healthy outlook for the bulls on the 1-hour chart. Recession may also be a little late, as the weekend sometimes sees an expected price jump that fades later on Monday. A short position at $3800 or $4000 can be considered if the prices reach there over the weekend. Otherwise, it would be best to wait to enter the new positions.