The present recovery trend in the price of Ethereum is being stopped by a slight correction.
Ethereum has fallen 3.5% from $1300 and is likely to continue falling.
The ETH has fallen 3.5% from the $1300 level and shows a strong likelihood of continuing to collapse. If the selling pressure continues, the price may retest the recently breached $1220 resistance level as a potential support, but will it hold above this level?
At the $1275 resistance, a larger price rejection candle portends a protracted decline. Potential declines to $1220 will encourage buyers and refuel the bullish vigor. The $5.1 billion in intraday trading volume for Ethereum indicates a 6.5% loss.
The price of Ethereum increased 20% to $1300 after a V-shaped rebound from the $1100–$1080 support. Buyers overcame some critical resistance levels, including $1160, $1220, and $1275, thanks to this bullish advance.
Additionally, for the last three days, purchasers have attempted to maintain above the $1275 support, but have failed miserably since the price fell below it on December 3. The continued rebound of Ethereum is thus slightly corrected due to the bearish engulfing candle.
The price of ETH is presently trading at $1257, with an intraday variation of 1.35%, According to CoinGabbar. The daily candle's long-wick rejection, however, suggests that the price will remain below the $1257 level.
The altcoin may fall another 3% to retest the $1220 level if there is persistent selling. Additionally, this decline, supported by a drop in volume, shows the correction is just transitory.
On the other hand, the bullish argument will be undermined if the daily candle closes below the $1257 support.
Relative Strength Index (RSI): The daily RSI slope failed to maintain above the neutral line, indicating market uncertainty.
EMAs: The sellers were able to lower prices from the $1300 level with the help of the 50-day EMA. Furthermore, a general downward trend was emphasised by the downsloping 100- and 200-day EMAs.
Resistance level- $1370 and $1500
Support level- $1220 and $1150
