Ethereum Price Analysis for December 29: Key Support Levels Crucial for a Move to $4,200

Summary:
Ethereum (ETH) is currently experiencing significant upward momentum, with its price reaching $3,016, representing a 2.7% increase over the last 24 hours. To maintain this bullish trend, it's essential for the cryptocurrency to sustain key support levels.

Key Takeaways

Ethereum's price has increased by 2.7% in the last 24 hours, reaching $3,016.
Key resistance levels to watch are $3,050 and $3,100.
A crucial support level is identified at around $2,917.65, vital for potential upward movement towards $4,200.
Ethereum has faced a pullback of 4% over the past two weeks despite current gains.

Ethereum

Examining Ethereum's Current Momentum

Ethereum is currently experiencing a strong upward trend, as indicated by its recent price surge to $3,016. This recent gain suggests that the asset could be entering a bullish phase; however, it remains uncertain if this momentum can be sustained. The price lies within a 24-hour range of $2,926.99 to $3,049.93, suggesting that Ethereum is currently facing important resistance levels.

Should Ethereum manage to break through the $3,050 barrier, the next significant resistance point could be around $3,100, with potential movement towards $3,200 if the upward trajectory continues. Conversely, if the price declines, the support levels between $2,900 and $2,920 could serve as a buffer, where buyers are expected to step in.

Looking at Ethereum's recent performance, the asset has shown resilience with a 2.7% increase over the past day. However, the 14-day trend shows a decrease of 4%, reflecting the challenges faced in the previous weeks.

Potential for Further Bullish Momentum?

Analyzing momentum indicators reveals a mixed scenario for Ethereum. The current price of $3,016 places ETH close to the upper part of its recent range, and the daily candlestick chart indicates a steady upward movement.

Ethereum 1-Day Price Chart

Despite the current price trend, the Awesome Oscillator (AO) rests at -75.82, indicating that bearish momentum is still present even as Ethereum shows signs of growth. However, the oscillator's recent shift to green could signal emerging bullish momentum if it holds.

Additionally, the Stochastic Oscillator suggests that Ethereum can sustain its upward movement, despite nearing overbought levels. However, caution is warranted as prices approach critical resistance points at $3,050 and $3,100. If these levels are not breached and indicators signal divergence, a retreat towards the support area around $2,900 may occur.

Critical Support Level for Ethereum

Pseudonymous analyst The Boss highlights that Ethereum is at a pivotal juncture, with a key support level marked at approximately $2,917.65.

Ethereum Prediction

For Ethereum to rally towards the targeted blue line above $4,200, it must remain above this critical support level. An immediate resistance point is also present at $3,415. From its current price of $3,016, a climb to $4,200 would necessitate a remarkable increase of about 39.3%.

Disclaimer: The information provided in this article is for informational purposes only and should not be interpreted as financial advice. The viewpoints expressed here may reflect the author's opinion and do not necessarily represent those of The Crypto Basic. Readers are encouraged to conduct their own research before making investment decisions. The Crypto Basic is not liable for any financial losses incurred.