Ethereum Price Has Just Made a Comeback. What Next?

Ethereum price bounced back on Monday as demand for cryptocurrencies resumed. ETH is trading at $4,335, which is about 10% above the lowest level during the weekend. The coin is slightly below this month’s high of $4,877. Its market cap is currently at $514 billion.

Ethereum, like all cryptocurrencies, tumbled sharply on Friday as global tensions rose. The coin crashed by more than 5%. This happened as other assets like stocks and commodities slumped hard. For example, the price of crude oil tumbled by more than 10% while Dow Jones shed more than 900 points.

There are two main reasons why Ethereum price is bouncing back today. First, analysts believe that the impacts of the new Covid-19 variant will be relatively muted just like Delta. Second, the new variant, if it proves more dangerous can lead to a delay of tightening by the Federal Reserve and other central banks. 

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Third, ETH price is also rising simply because other coins and other assets have rebounded. Bitcoin has risen by more than 5.4% in the past 24 hours. Other coins like Ripple and Solana have also jumped, pushing the total market cap of all cryptocurrencies to more than $2.7 trillion. Finally, Ethereum price is doing well in anticipation of the Santa Rally.

Ethereum price prediction

The daily chart shows that the ETH price has remained in a tight range recently. This range is shown using the red triangle. It is also hovering near the 23.6% Fibonacci retracement level. Also, it has moved slightly above the 25-day and 50-day moving average. 

Therefore, while it is too early to tell, there is a possibility that the coin will bounce back as we move into December. Historically, cryptocurrencies tend to do well in December and then pullback in January. If this happens, there is a likelihood that the Ethereum price will bounce back and retest the key resistance at $4,877, which is about 14% above the current level.

Ethereum Price