Ethereum dipped below the $4000 mark and tested the $3800 level as resistance over the past few days. The $3620 mark has been tested twice. Bitcoin Dominance has increased from 39.94% to 40.22% in the hours before press time. Buyers are not in a strong position at these levels for Ethereum. Well, the interesting question is- Will the advent of the new year cause ETH to descend further south as Bitcoin fails to break through $48.5k? Or will it show another bounce and more chops?
ETH- 1HOUR
The yellow levels represent the Fibonacci retracement levels for a larger ETH move, marking them as important levels on the lower timeframe. During the last week, we saw ETH respect the $4121 resistance, rejected, and found some support at $3585 and $3620, near the $3660 retracement.
$3800 has been an area of demand in the past and it is not an encouraging sign for the bulls to see this area shift from demand to supply.
At the time of writing, the price is above the 23.6% retracement to ETH's drop from $4150 to $3585. This suggests that we could see another upside towards $3800.
One thing to keep in mind is that the weekend has arrived, along with a big holiday. This establishes conditions of low liquidity where the price can be moved in either direction in a significant way. The December 4 sell-off came to mind.
Theoretical basis
The price has rallied between the $3600 and $3800 levels over the past few days. The RSI is also at 50 neutral, showing that the momentum in the 1-hour time frame is not in favor of the bears or the bulls.
OBV seems to have found a temporary (green) bottom recently but crashed shortly after being rejected at $3800. This shows that buyers are still fearful while sellers are dominating.
Inference
On the 1-hour chart, Ethereum does not offer a healthy outlook for the bulls. It may also be too late to cut prices, as weekends sometimes see hopeful rallies that are then erased on Monday. Short positions at $3800 or $4000 could be considered if the price gets there by the end of the week. If not, it's best to wait to enter new positions.
According to AmbCrypto