ETH Price Analysis: Bulls Looking For Yearly High Retest

ETH price has been flat for the last 7 days but has seen strong upward momentum over the last month. Following a sell-off from recent yearly highs, why are traders looking for the digital asset to retest yearly highs in the short term? We take a look at the technicals and outline strong levels to keep an eye on this week. 

ETH Price

At the time of this reporting, Ethereum is currently trading at $448.91. The second-largest digital asset by market cap has been down ~ 1% the last week but has done well over the last month. Even though it is underperforming Bitcoin, Ethereum has still managed to rally ~ 24% in the last 30 days.

Most recently, Ethereum cracked a yearly high around $482, as many investors are looking forward to the upcoming launch of ETH 2.0. With the Ethereum network being congested this year, ETH 2.0 is expected to lower fees and create a more efficient network. ETH 2.0 is expected to launch early next month if everything goes smoothly. The rally to yearly highs came to a halt as ETH price ended up retracing to $450 levels. Based on the current technicals, what price levels will traders be watching this week?

Ethereum Technical Analysis

As mentioned above, ETH price recently hit new yearly highs on November 13th. This strong bull run originated in late September when ETH bounced off key support around $310. Since then, Ethereum rallied into $480 territories before witnessing a small pullback. With ETH currently trading around $448.91, the digital asset is still in a good spot to potentially retest the yearly high.

ETH Price Technical Analysis

We can see the short pullback that ETH price has experienced since it hit yearly highs this year. The last time Ethereum saw these levels was in early September. ETH was unable to maintain the levels at the time and saw heavy selling pressure all the way to $320. The environment is a bit different this time around, especially with Bitcoin FOMO kicking in and ETH 2.0 FOMO kicking in.

With this being said, we still believe that ETH will retest and put in new yearly highs in the short term. There is strong support at $420 right now for ETH/USD. As long as ETH price can hold above that level, we believe that bulls will remain in control. On the contrary, if ETH did end up rejecting $420 support, the narrative would then change a bit. Many traders will most likely manage risk by having their stops right below $420 to protect against a strong sell-off. This also provides some cushion and puts traders in a good position to catch another leg up.

Another indicator we continue to watch is ROC ( rate of change ). This indicator is outlined at the bottom of the chart and helps assess momentum. Any figure above 0.00 denotes bullish momentum. Right now ETH is a bit lower than we would like to see, but it still remains in a neutral zone right around 0.

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice.

This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.