Wed, Dec 07, 2022 @ 13:14 GMT
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ETHUSD Gains Upside Traction after Hitting Double-Bottom

ETHUSD (Ethereum) has experienced a sharp decline in the short term, with the price testing its four-month low of 1,070 twice. However, the cryptocurrency managed to bounce back and recover some ground in the last couple of sessions.

The momentum indicators currently reflect that negative risks are subsiding. Specifically, the MACD histogram has crossed above its red signal line but remains in the negative territory, while the stochastic oscillator is sloping upwards after posting a bullish cross.

To the upside, bullish actions could propel the price towards the 50-day simple moving average (SMA), currently at 1,350. Piercing this threshold, the bulls could aim for the recent peak of 1,675 before the spotlight turns to the August trend reversal point of 2,030. Even higher, further advances might come to a halt at the 2,450 support territory, which could now act as resistance.

Alternatively, should sellers push the price lower, immediate support could be met at the double-bottom region of 1,070. If that floor collapses, Ethereum could test the crucial 1,000 psychological mark. A violation of the latter could open the door for the 2022 low of 880.

Overall, ETHUSD appears to be attempting a minor recovery after encountering tough support. Hence, a break above its 50-day SMA could trigger a significant upside move.

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