Ether price analysis 28 Dec: has the correction resumed?
Ether may remain range-bound in the short term

Bitcoin has risen more than 70% in 2021 while ether has surged more than 450% during the same period, indicating strong outperformance. This helped ether’s crypto market dominance to soar from 10.79% at the start of 2021 to 22% on 9 December while bitcoin’s market dominance shrank from 70.68% to 40.2% currently, according to coinmarketcap data. Some ether bulls believe that ether may eventually flip bitcoin.
One of the major factors that may be driving ether investors to competitors is the high network fees on the Ethereum blockchain. However, since hitting a high of close to $62 on 9 November, the average gas fee has dropped to $27.43, according to data from BitInfoCharts.
The Chicago Mercantile Exchange (CME) launched micro ether futures on 6 December 2021. Until 17 December, the new offering had seen 115,000 contracts being traded, the exchange told CoinDesk. The interest in micro ether futures pales in comparison to micro bitcoin futures, which began trading on 3 May. In two weeks, micro bitcoin futures had traded 224,151 contracts.
However, the slow activity in micro ether futures could be attributed to the low volumes traded in December ahead of the year-end holidays and the negative sentiment due to the recent sell-off in the crypto sector.
Could ether go up and end the year with strength? Read the ETH price analysis to find out.
Ether price technical analysis: weekly chart

ETH’s price once again bounced off the 20-week exponential moving average (EMA) last week, indicating that the bulls continue to defend the level aggressively. The ETH/USD pair finished the week at $4,065.42, with a gain of 3.61% over the previous week’s close.
Both moving averages are sloping up and the relative strength index (RSI) is in the positive zone, suggesting a minor advantage to buyers.
However, the bears have not yet given up and are again trying to pull the price back below the 20-week EMA today. If they sustain the price below the 20-week EMA, the pair could start its decline toward the 50-week simple moving average (SMA).
What is your sentiment on ETH/USD?
Conversely, if the price rebounds off the 20-week EMA, the bulls will again try to push the price above $4,154.77 and resume the up-move. The pair could then start its northward march toward the all-time high at $4,868.91. A break and close above this level will signal the resumption of the uptrend.
Ether price technical analysis: daily chart

ETH’s price broke and closed above the 20-day EMA on 23 December, suggesting that the bearish momentum could be weakening. However, the buyers could not sustain the positive momentum and drive the price above the 50-day SMA.
This suggests that the rise above the 20-day EMA could have been a bull trap. The price turned down today and the bears are trying to pull the pair below the uptrend line.
If they succeed, the pair could drop to the strong support zone of $3,641.36 to $3,500.94. The bears will have to sink the price below this zone to indicate the start of the next leg of the down-move.
Alternatively, if the price rebounds off the uptrend line, the bulls will again try to push the pair above the 50-day SMA. If they manage to do that, the bullish momentum could pick up and the pair could rise to $4,493.73 and thereafter attempt a rally to the all-time high.
Ether: Buy or sell this week?
Ether’s price analysis shows the pair has turned down from the 20-day EMA. If the bears pull and sustain the price below the uptrend line, the pair could drop to $3,641.36. The buyers will have to push and sustain the price above the 50-day SMA to signal that the correction may be over.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.