Bitcoin’s crash on Dec. 8 to $ 17,650 weighed heavily on most altcoins and Ether was not saved from the flesh.
As the price of Bitcoin (BTC) fell uncertainly close to a large CME gap at $ 17,000, the price of Ether (ETH) fell below the 20-MA to $ 529. At this level, Ether came over to RSI and was the bounce from that region strong enough to bring the price back to the 20-MA.
At the time of writing, the 20-MA acts as short-term resistance and above it, at $ 582 there is a high volume mark on the visible volume profile range.
Even if Ether is able to flip the 20-MA back into support, it is expected that the $ 583 to $ 600 zone will act as resistance, unless the Bitcoin price surges through the $ 19,500 level. Although, this seems unlikely as BTC may have its own battle pushing through $ 18,800 to $ 19,150.
A few positives for Ether are the 4-hour RSI is about to push through the center line and the MACD is on its way to converge with the signal line. The MACD histogram also shows a drop in sales pressure but traders will note that purchase volume decreases as the price approaches the 20-MA.
Given the relationship between the Bitcoin price action and the altcoins relationship, today’s daily close for BTC will be something to watch. Currently, BTC’s price is trying to recapture the $ 18,500 level but it would be best to close above the 100-MA at $ 18,600.
Closing above the 100-MA would give traders looking for the price a rebound of the 20-MA at $ 18,800 and set the stage for the digital asset to push through the $ 18,800 area to $ 19,150.
Bulls look ready to re-take $ 590
In the short term, traders can at least breathe a sigh of relief since Ether held above the $ 521 support that prevented the price from breaking down to $ 475.
Aside from needing to recapture the 20-MA, there is little overhead resistance until the price reaches the downward trend that accompanies the $ 583 to $ 600 resistance cluster.
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