Ethereum price prediction: Ether flirts with short-term support at $3,300 barely a week after climbing to a new yearly high of $4,095. For some investors this correction means panic.

However, savvy participants, otherwise referred to as smart money, are acting by scooping up the liquidity following $122 million in liquidations, according to Coinglass data.

Ethereum liquidations | Coinglass

Ethereum Price Prediction: What’s Next After Holding $3,300 Support

Traders are deliberating whether to buy or short Ethereum price at $3,300 support. Unfortunately, there is no easy answer to the dilemma, especially with the Relative Strength Index (RSI) bouncing back to 42 after testing near oversold levels (30 and below).

The bullish outlook from the RSI alone may not be enough to call for immediate buy orders, but if ETH price closes the day above $3,300, stability could begin to return on the battered market.

The Money Flow Index (RSI) which tracks the flow of money in and out of Ethereum shows that buyers are regaining strength. As more people bet on the dips, the MFI climbs towards the overbought region. In turn, buying pressure will ignite a new uptrend, aiming for gains above $4,000.

Ethereum price prediction chart | Tradingview

Indicators like the 200-day Exponential Moving Average (EMA), the 50-day EMA, and the 20-day EMA signal that the correction in Ethereum may be far from over.

Attempts to recover to $4,000 must take place aggressively, otherwise, more losses will could leave a deteriorated technical structure, resulting in prices dropping to $3,000 in the short term and $2,500 in the medium term.

It is also worth keeping in mind that Ethereum price currently holds below the previous day open at $3,520. A break above this level in this session could imply that Ethereum starts the next session on Wednesday stronger, encouraging traders to keep buying instead of selling.

The most robust resistance lies between $3,739 and $3,839, as highlighted by the IOMAP model graphically prepared by IntoTheBlock. More ETH coins are experiencing unrealized losses compared to those in profit. Precisely, 4.46 million ETH roughly 34% are in the money and 8.7 million ETH approximately 8.7 million ETH are out of the money.

Ethereum IOMAP model | IntoTheBlock

Support areas have shrunk significantly since the weekend as observed with the green circles on the chart. Therefore, investors must move strategically to ensure that they avoid falling into more traps.

The most solid support in the range between $2,832 and $2,932 represents 1.61 million addresses which purchased 1.32 million ETH at an average price of $2,887. This region will come in handy for the bulls if downward pressure overwhelms the demand at $3,300 and $3,300 causing a larger sell-off.

On the upside, for Ethereum to strongly flip bullish, the price has to break above the thick supply area highlighted between $3,739 and $3,839. FOMO may kick in as ETH climbs above $4,000 bringing the all-time high above $4,800 within reach.

The post Ethereum Price Prediction: Is Smart Money Buying Or Selling ETH At $3,300? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am