Ethereum (ETH): Why Enthusiasts Should Look Beyond Its Current Formation

  • Short and long-term Ethereum holders witnessed gains.
  • Persistence BTC bearishness can see Ethereum finding new footing at $1,217 and $1,166.

Ethereum suffered a decline as we entered the weekend. The leading alt surrendered its psychological level of $1,200 after Bitcoin struggled to remain beyond the $17,000 mark. While publishing this content, ETH changed hands at around $1,270.

Meanwhile, according to technical indicators, the alternative token might see continued downside trends over the weekend. Continued bearishness might see Ether landing at the support floors of $1,217 and $1,166.

Will Ethereum Bears Assume Full Control?

Ethereum has had its movements within $1,239 – $1,378 in September and October. An upward break from this value area saw the token gaining more than 20% to hit $1,682 during November early sessions.

Nevertheless, the market crash intensified the downward actions, welcoming a massive correction. Ethereum encountered substantial resistance at 38.2% Fibonacci level (bearish order block) during this writing.

Technical indicators showed Ethereum might dip further. The RSI (Relative Strength Index) moved sideways while hovering beyond the neutral-50, but a drop seemed unavoidable.

That indicated that buyer exhaustion might support selling tendencies. Moreover, the OBV (ON-Balance Volume) moved sideways after printing a gentle upward slope.

It confirmed faded trading volumes to support the buying momentum. That can welcome undermined buying pressure. Thus, Ethereum might plummet to settle at the support floors of $1,217 and $1,166.

Nevertheless, an intraday closing beyond $1,306 will cancel the discussed bearish stance. Such cases might see Ethereum sailing upsides despite multiple hurdles toward the 100% & 78.6% Fibonacci pockets.

Long and Short-Term Holders Profited, But

Ethereum long and short-term holders enjoyed profits, regardless of the latest bearish bias. For instance, the 30d MVRV (Market Value-Realized Value) remained positive since November 29. That indicated that ETH’s near-term holders saw profits since November’s end.

Unfortunately, the alternative token witnessed a negative sentiment during this writing. And that might delay continued upsides. Therefore, selling momentum might magnify during the weekend and into the new week if Bitcoin retains bearish tendencies.

Nevertheless, BTC maintaining an upside momentum after regaining $17K would see Ethereum exhibiting a bullish market structure. Meanwhile, Ether investors should wait for decisive market directions before making a profitable move.