Santa Rally Traps Swing Traders as Ethereum Faces Price Correction Phase

Ethereum price again slipped below the $1300 mark in the intraday trading session.
The market capitalization has fallen by 2.5% to $157.7 billion in the last 24 hours.

The crypto market is down slightly as the total market capitalization declined by 1.26% to $860.19 billion. Amid the positive vibes, Bitcoin climbed to a monthly high above $18K, and Ethereum price moved above the $1300 level. Bears started applying selling pressure on ETH, which pushed the price below the $1300 mark.

As per Coinglass, nearly $23.8 Million have liquidated in last 24 hours. However, Ethereum price is moving lower and Long/Short Ratio is present at the 0.92 mark. Shorts are greater than Longs, suggesting bears dominance on ETH.

Ethereum Price Chart on 4 Hour

Ethereum price is declining on the 4-hours chart. After reaching a 30 day high of $1352. Amidst the retracement phase, ETH price again declined below the $1300 mark in the intraday trading session. Thus the second largest cryptocurrency is approaching the green moving line of the EMA ribbon indicator, in fact, the bulls are waiting for a retest of the support trendline to meet the retracement level.

If Ethereum price breaks below the rising trend line, buyers could see a drop of around 8.5% until it hits the previous low of $1150. Meanwhile, as of press time, the asset is trading at $1287 against USDT. Moreover, ETH price relative to the bitcoin pair is down 2.13% at 0.07278 satoshis.

Ethereum Price Chart on Daily Basis

In terms of the daily price scale, Ethereum today slipped below the 50-day exponential moving average. Now 20 EMA is the next support level for the bulls. The buyers should maintain this support level. Conversely, the RSI indicator remains above the semi-line (50 points), but its peak is about to push past this support level.

Conclusion

Ethereum price is finding support after a slide below the $1300 level. In the upcoming trading session, the bulls should keep ETH price above the 20-day exponential moving average to keep itself away from another price slide.

Technical Levels

Support level – $1200 and $1100

Resistance level – $1300 and $1500

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing