Technical Analysis

ETH/USD Analysis – December 31, 2021

By LonghornFX Technical Analysis
Dec 31, 20213 min

Daily Price Outlook

ETH/USD ended the day at $3709.42, having reached a high of $3767.96 and a low of $3588.14. The ETH/USD pair reversed its momentum on Thursday and broke its 4-day bearish streak after the market turned positive. After dropping to a multi-week low, Ethereum has seen a continuous decline in its value. Most leading coins have been under pressure lately as investors are moving their funds out of the crypto segment in the last days of 2021. However, on Thursday, the second-largest cryptocurrency by market cap turned green and recovered a minor portion of its previous losses, mainly due to a price correction.

According to analytics firm Wu Blockchain, the whale wallets holding more than 1000 ETH dropped by nearly 5% in 2021. The report suggested that Justin Sun, the founder of TRON, also joined the Ether Whale Dump Party and has one of the biggest known Ethereum wallets, and in 2021, he has been seen dumping his holdings of ETH.

According to the report, Sun sold approximately 165,989 ETH for $592 million. However, the report from Colin Wu explained that the founder of Tron did not sell his Ethereum holdings for personal profit but that the transactions were made from internet deployment wallets that were not used to profit. Justin Sun also clarified the reason behind the transactions and said that it had nothing to do with Tron or ETH but was part of an internet deployment of wallets.

Meanwhile, the Chief Executive of Real Vision, Raoul Pal, has said that he was confident that Ethereum would surpass Bitcoin to become the leading crypto in the market. He believes that the Ethereum network will outperform BTC in the not-so-distant future, as suggested by its current speed and growth. ETH has seen an increase of 500% on a year-to-year basis compared to 95% of Bitcoin’s in the same period. This prediction by Raoul Pal added some positivity surrounding the ETH ecosystem and pushed it higher on Thursday.

Furthermore, the sudden rise in ETH/USD after four consecutive days of decline could also be attributed to a price correction. For example, investors might have started taking profit from selling positions, which could have triggered gains in ETH/USD on Thursday ahead of New Year Eve.

ETH/USD Intraday Technical Levels

Daily Technical Levels

Support Resistance

3609.06 3788.88

3508.69 3868.33

342924 3968.70

Pivot Point: 3688.51

ETH/USD - Technical Outlook 

The ETH/USD is trading with a neutral bias at the 3,732 level, maintaining a narrow trading range of 3,760 – 3,686. Considering the holiday session, the market is exhibiting thin trading volume and volatility. Therefore, the choppy session continues to prevail in the market.

A surge in ETH/USD demand, as well as a breakout of 3,760, expose the price to the 3,796 or 3,870 level. Further on the higher side, the breakout of 3,870 exposes Ethereum's price towards the 3,979 level. On the flip side, the breakout of the 3,686 support zone opens up a downtrend until the 3,613 or 3,503 support zone. On Friday, the bullish bias dominates over 3,686 levels and vice versa. All the best!


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