Friday, December 3

Ethereum marks a new high, but still bulls don’t have much determination

Ethereum continues to climb steadily, with a few bulls unwilling to relinquish control to sellers, though they don’t show much determination.

At the time of this writing, ETH is trading at $ 4,495.15, accumulating a loss of 1.24% in the last 24 hours, and a slight gain of 3.67% during the last 7 days.

Overall, fundamentals remain positive, although network congestion still creates problems.

The chain’s hash rate is hitting high after high, going well above the point where the drop that led to the outflow of miners in China began.

Despite the fact that this speaks to us of a very good health of the network in terms of security and adoption, the fees are still high. Simply approving a token to trade on Uniswap can reach a commission of up to $ 50 depending on the time.

Average fees on the Ethereum network.  Source: Etherscan.
Average fees on the Ethereum network. Source: Etherscan.

This situation of high operating rates is generating a great growth of the blocked value in layer two networks, which interact with the Ethereum virtual machine, but offering cheaper commissions.

Ethereum technical analysis as bulls stay in control

From the weekly ETH vs USDT chart we see a medium / long-term momentum developing.

Now the price is finally trying to get past the resistance that created the high reached in May.

At the moment the Ethereum bulls do not show much determination, but it is possible that volatility is about to increase.

The developing momentum should still extend well further before giving way to a correction.

However, if a significant upside volatility does not occur soon, we could see some selling in the short term.

Daily chart

From this time frame we observe that the short-term trend of the price of Ethereum is in the hands of the bulls thanks to the continuous lows and highs that are higher and higher.

A small setback is currently developing, which appears to have already reached bottom.

If so, a new high should be on the way. However, if the price fails to show bullish determination soon, it appears that the rise will not be sustainable for too long, and a correction will occur before buyers regain control.

To think about sales, support must be lost at $ 4,287. At the moment it is not very likely that it will happen, I would say that 40% compared to 60% to mark a new maximum in the next few hours.

Nonetheless, it is worth monitoring the behavior if a relevant correction begins.

Technical analysis of the Ethereum daily chart, while the bulls are in control of the trend.  Source: TradingView.
Technical analysis of the Ethereum daily chart, while the bulls are in control of the trend. Source: TradingView.

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