Ethereum Battles for Stability: Can Bulls Turn the Tides?

• Ethereum Daily RSI stands at 71, indicating an overbought condition.
• The SEC delays Ethereum ETF decisions until May 2024 and seeks public input.

Ethereum, the second-largest cryptocurrency, has experienced high price volatility and remained under bearish control for over three days. However, today marks a potential recovery as ETH surged by 3% in the past 24 hours, paralleling the global market cap’s 4% surge within the same timeframe. ETH hit a two-week low of $2119 yesterday and is currently trading at $2,236.

In the past week, it saw a modest surge of 0.71%, but the bearish trend influenced significant whale activity. Notably, Ali, a popular crypto influencer, highlighted in a recent tweet how a few ETH whales accumulated 100,000 ETH in the last week, valued at over $230 million.

Analysts predict that bears might dominate in the upcoming days due to liquidation and technical chart indicators. However, there’s hope that the holiday season could potentially favor the bulls and rewrite this narrative, offering some Christmas gifts to the bullish market.

In the domain of Ethereum ETFs, which wield the power to trigger a bull rally, the Securities and Exchange Commission (SEC) is delaying its decision on several exchange-traded funds (ETFs) until May 2024. The Dec. 18 regulatory filings indicate this delay, citing the need for further public input on whether these ETFs should be listed.

Significantly, the SEC postponed its decision on the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF through these filings. Additionally, the agency deferred its decision on the VanEck spot Ethereum ETF and the spot Ethereum ETF proposed by Cathie Wood’s ARK Invest and 21Shares.

Will ETH Bulls Put Up a Tough Fight?

An analysis of recent movements suggests a potentially precarious bullish trajectory on the daily chart, with the 9-day exponential moving average (EMA) positioned above the current trading price at $2236.91. However, the daily relative strength index (RSI) indicates an overbought condition, standing at 71.

ETH Price Chart, Source: TradingView

If the price surges and manages to surpass $2244, it will likely ascend further to test the $2282 resistance area. Conversely, if the price succumbs to bearish momentum and drops below the $2080 support level, it may decline further to test the $2043 level.”