DAILY NOTION: Ethereum Price Targets $590 After Bulls Vigorously Buy the ETH Dip

Photo: Coin Telegraph

Bitcoin’s Dec 8 breakdown to $17,650 weighed heavily on most altcoins and Ethereuem was not spared from the carnage. 

Daily cryptocurrency market performance. Source: Coin 360

As the price of Bitcoin dropped precariously close to a large Chicago Mercantile Exchange (CME) gap at $17,000, Ethereum price fell below the 20-moving average (MA) to $529. At this level, Ether became oversold on the relative strength index (RSI) and the bounce from that region was strong enough to bring the price back to the 20-MA.

ETH/USD four-hour chart. Source: Trading View

At the time of writing the 20-MA is functioning as a short-term resistance and above it, at $582 there is a high volume node on the volume profile visible range.

Even if Ethereum is able to flip the 20-MA back to support, it’s expected that the zone from $583 to $600 will function as resistance, unless Bitcoin price surges through the $19,500 level. Although, this seems unlikely as Bitcoin may have its own battle pushing through $18,800 to $19,150.

A few positives for Ether are the four-hour RSI is on the verge of pushing through the midline and the Moving Average Convergence Divergenece (MACD) is en-route to converge with the signal line. The MACD histogram also shows a reduction in sell pressure but traders will note that buy volume is tapering off as the price approaches the 20-MA.

Given the relationship between Bitcoin’s price action and that of altcoins, today’s daily close for Bitcoin will be something to watch. Currently, Bitcoin price is attempting to recapture the $18,500 level but a close above the 100-MA at $18,600 would be preferable.

A close above the 100-MA would give hope to traders looking for the price to retest the 20-MA at $18,800 and set the stage for the digital asset to push through the $18,800 to $19,150 area.

Bulls look ready to retake $590

For the short-term, traders can at least breathe a sigh of relief since Ethereum held above the $521 support which prevented the price from breaking down to $475.

Aside from needing to recapture the 20-MA, there is minimal overhead resistance until the price reaches the descending trendline which is aligned with the $583 to $600 resistance cluster.

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