ETH/USD Analysis – December 24, 2021

Daily Price Outlook

The ETH/USD was closed at $4109.70 after placing a high of $4148.85 and a low of $3895.82. ETH/USD surged on Thursday and recovered all of its previous session’s loss amid positive developments surrounding its ecosystem. Terabithia, a cross-chain contract communication and asset mirroring technology, was launched by Psychedelic, a Web 3.0 development studio that builds solutions for the Internet Computer. This will effectively turn the Internet Computer into a layer-two scaling solution for Ethereum. Users will have the capacity to mirror and operate any Ethereum tokens, fungible and non-fungible, on the Internet Computer blockchain and vice versa. The protocol will tackle the problem of Ethereum network congestion and high gas fees. This news sparked some upside pressure on ETH/USD prices in the market.

A crypto research analyst at Fundstart, Armando Aguilar, has predicted the second-largest cryptocurrency. According to Aguilar, more adoption from institutional investors will be seen in bitcoin and will make the next year successful for BTC. For Ethereum, Aguilar said that he sees the price of Ethereum doing very well in 2022.

Aguilar predicted that Ethereum’s token might reach $9000 by the second quarter of 2022, and for this bullish prediction, he gave a reason for the growth of decentralized finance, NFTs, and Metaverse. He said that institutional investors would take more interest in DeFi, which will push it to new heights, and the trend will lift ETH to $9000. This positive prediction from a crypto analyst added further upside momentum in ETH/USD prices.

A report from statistics collector Glassnode showed that the Ethereum network reached an all-time high of non-zero addresses, wallets holding a positive amount of coins with 70.8 million non-zero wallets as of Thursday. This news also added a positive sentiment surrounding the Ethereum ecosystem and pushed its prices higher to recover all of its previous session’s loss.

ETH/USD Intraday Technical Levels

Daily Technical Levels

Support Resistance

3954.07 4207.10

3798.43 4304.49

3701.04 4406.13

Pivot Point: 4051.46

ETH/USD - Technical Outlook 

Ethereum created a base above $3,900 to begin a new uptrend. ETH was managed to break through the $4,000 resistance level and the 100 hourly simple moving average. The bulls pushed the price over the resistance levels of $4,050 and $4,080. On the hourly chart of ETH/USD, there was also a break over a significant contracting triangle with resistance above $3,960. A peak was made near $4,155, and the price declined.

Below the $4,100 support level, there was a break. Ether has already fallen below the 23.6 percent Fib retracement level of the recent rise from the $3,896 swing low to the $4,155 high. If Ethereum fails to start a new uptrend over $4,150, it may correct lower. On the downside, an initial support level is near $4,050. The first crucial support level is already emerging near $4,020. The 50 percent Fib retracement level of the latest rise from the $3,896 swing low to the $4,155 high is also approaching $4,020. A breach below the $4,020 and $4,000 levels might bring the price down to $3,920.