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While Ethereum showed a massive drop below $ 500 on November 26, a strong recovery brought the asset back above $ 600. While the price is currently hovering below the range, short-term analysis has indicated a rather uncertain trend.
Ethereum 1 hour chart
Source: ETH / USD on Trading View
On November 24, Ethereum’s value reached $ 623, but yesterday on December 1, it hit a new high of $ 637. Although the valuation has dropped more than $ 30 in the past 16 hours, the asset is currently showing formation. symmetrical triangular. A symmetrical triangle could break either way on the short-term chart, but the 50 moving average has continued to push the support below.
Another positive result from the illustration above is the linear decline in price and trading volumes. Any concomitant decline in these two factors can lead to a rapid upward reversal.
However, it is important to keep an eye on the 4-hour chart as well.
Source: ETH / USD on Trading View
Although it is a long shot, the 4-hour chart can complete a double maximum pattern that the valuation will retest at $ 500 again. It would completely cancel the MA and the price could reach a new low above $ 489 on November 26th.
Market reasoning
Source: ETH / USD on Trading View
Market indicators are mostly neutral at press time. The Relative Strength Index or RSI hovers just below the 50 rating and is unsure of constant buying or selling pressure. Awesome Oscillator is also completely neutral with a lack of real momentum.
However, MACD showed a bullish outlook and with the trend completely reversed at press time.
Conclusion
While Ethereum may have experienced a rather significant drop last week, it may not be the last if the bears are able to improve their grip. That said, even the bulls could have a say with the equally matched short-term trend right now.
