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Ethereum (ETH) together with Bitcoin (BTC) obtained good returns during 2021 due to rising inflation in all countries and US dollar depreciation during 2020 - 2021.
Some analysts argue that a significant rise in Bitcoin and altcoins in recent months was caused by almost zero interest rates, or in some cases negative. In many countries with rising inflation, fiat currencies lose their value and investors seek refuge in assets such as Ethereum and other cryptocurrencies, which gave the crypto market strong gains.
However, the strength of Bitcoin could be in danger because the United States and other countries have announced for 2022 the increase of their interest rates in order to control inflation. This would make Bitcoin less attractive as a form of digital gold. As a result, a strong correction in prices could occur and Ether could fall to $ 1,500 and BTC to $20,000.
In the short term, Ether will probably continue to oscillate until approximately the second quarter of 2022, when the United States is planning to increase its interest rate. Therefore, we believe that it could continue to fluctuate between the levels of 3,500 – 5,000.
According to the 4-hour chart, we can see that Ether is trading below the 200 EMA and below the 21 SMA. It could be moving sideways. However a sharp break below 3,950 would confirm the break of the symmetrical triangle pattern . Thus, the price could drop as low as 4/8 of a Murray around 3,750.
On the other hand, a rise and a break above 200 around 4,096 could be a confirmation of a bullish move and could be a signal to buy with targets at 4,375(6/8). The price could go as high as 4,687 (7/8).
Our trading plan is to wait for Ether to consolidate above 4,090 and buy with targets at 4,375. The eagle indicator is showing a positive signal and a bullish move is likely these days.
Support and Resistance Levels for December 27 - 28, 2021
Resistance (3) 4,375
Resistance (2) 4,234
Resistance (1) 4,124
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Support (1) 3,991
Support (2) 3,918
Support (3) 3,750
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A trading tip for Ether on December 27 - 28, 2021
Buy above 4,090 (200 EMA) with take profit at 4,375 (6/8) and 4,687 (7/8), stop loss below 3,950.
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