16th November 2021 | ZebPay Trade-Desk
Ethereum (ETH) is facing strong overhead resistance, and this signals that bears are attempting to stall the next upward move. Having said that, on-chain metrics remain strong, and volumes have been supportive too. ETH has witnessed a 7% correction in the past 24 hours, and currently, trades are $4,400. Its dominance is also down, currently at 19.2%, with a market capitalization of $520bn. In the immediate short term, the trend seems to have become slightly bearish, as the asset fell past its crucial support level of $4,400.
ETH had been trading in an uptrend and last week the prices touched the new all-time high of $4,864.9. However, the asset witnessed minor profit booking at the higher levels. Technically, ETH has made a ‘Spinning Top’ candle at its peak which indicates indecisiveness on the part of bulls to continue its juggernaut for the moment.
This indecision can signal more sideways movement or a possible reversal. To further rally the asset must break or close above the recent high of $4,864. This is the first time that the ETH is trading below the 20 Day Moving Average since it started moving up. The asset has a strong support zone from $4,350 to $4,250, a break below the support may lead to the further downfall and the price can slide to the next support level which is at $3,950.
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