Ethereum Price Prediction: ETH Registers Sharp Drop, Slips Below $4000

Daily Ethereum ETH Technical Analysis

By
Last Updated December 29th 2021
3 Min Read
  • The Ethereum price registered a sharp drop during the ongoing session and is currently down by over 3%. 
  • ETH has been quite bearish in recent sessions and has been in the red since Sunday. 

The Ethereum price slipped below $4000 as sellers drove the price down significantly during the current session. The price had registered a fall of 1.59% on Friday, dropping to $4047, before pushing up over the weekend, rising to $4097 on Saturday. The price fell back on Sunday, ending the weekend at $4065. The price continued to drop on Monday, falling by 0.68%, before dropping below the 20-day SMA and $4000 during the current session. 

Ethereum Price Chart Shows Buyers In Control Of Session 

The Ethereum price started the previous weekend on a positive note, registering an increase of over 2% on Saturday. On Sunday, the price fell back in the red, dropping by 0.95% and ending the weekend at $3927. The price was back in the green on Monday, rising by 0.45%, and then rising by almost 2% on Tuesday and settling at $4019. Despite the bullish sentiment, ETH was back in the red on Wednesday, dropping by 0.94% and settling at $3981.

Image: ETH/USD daily

ETH/USD daily chart 122921

After falling below $4000 on Wednesday, the Ethereum price pushed back up on Thursday, rising by over 3%, pushing above the 20-day SMA and settling at $4112. However, the price fell back on Friday, dropping to $4047, where the 20-day SMA acted as support. As a result, the price pushed back up over the weekend, rising by 1.23% to $4097 on Saturday. ETH was back in the red on Sunday, dropping to $4065, and then continued to drop on Monday, falling by 0.68% and settling at $4037. The current session sees ETH down by nearly 3%, with ETH dropping below $4000.

We can see that the Parabolic SAR is bullish, but if the price continues to drop, we could see it flip to bearish.

Looking at IntoTheBlock’s IOMAP for the Ethereum price, we can see that ETH faces strong resistance at around $4181. At this price level, over 1.4 million addresses have sold more than 10.8 million ETH.

Image: IntoTheBlock 

ETH/USD volume chart 122921

The 4-hour Ethereum price chart shows us that ETH had pushed up to $4051 on the 22nd. The price fell from this level, dropping below the 20 and 50-bar SMAs and settling at $3912. The price made a strong recovery from this level, surging past the 20 and 50-bar SMAs and moving to $4135. However, ETH could not stay at this level and fell back to $4041, where the 20-bar SMA acted as support. The price pushed up from this level, rising to $4097, before falling back below the 20-bar SMA and settling at $4016. The price pushed back up to $4094 before falling back below the 20 and 50-bar SMAs and dropping to its current level of $3919.

We can see that the Parabolic SAR and MACD are both currently bearish, indicating that the price could drop further.

Image: ETH/USD 4-hour

ETH/USD 4-hour chart 122921

Ethereum Price Is Expected To Reach These Levels

The Ethereum price shows us that ETH has fallen considerably during the current session. However, if the current sentiment persists, ETH has shown a marginal recovery, rising back above $3900, although the price remains firmly in the red. It remains to be seen how far the price can recover, although it is more likely to settle around $3900.