Ethereum prices are higher at the time of this writing, solidifying proponents’ claims that the bottom of the currency could be at its end.
Looking at the formation in the daily chart, ETH is up a decent 19 percent from November lows, pointing higher with decent trading volumes.
Even though traders are confident, expecting more gains in the days ahead, bulls must reverse the losses of early November.
In that case, ETH will close higher with a solid footing, a ground for possible expansion in December. However, as things stand, ETH has resistance at $1.35k, a critical liquidation level.
Encouragingly, prices are above the dynamic resistance line defined by the 20-day moving average.
Overall, the path of least resistance remains southwards unless there are gains above $1.35k with expanding participation levels.
wETH de-pegging Jokes
Early this week, there were concerns about wETH and whether the wrapped token’s peg with ETH would hold.
Briefly, wETH fell below parity with ETH, spooking the market and triggering discussions across the board.
The mechanics behind wETH and ETH is that they are guided by smart contracts, and it is, nonetheless, hard for wETH to de-peg—or wETH to be released without ETH backing. According to Sassano, wETH can only de-peg if there is a smart contract bug. However, this is nearly impossible because its code is open source and audited by the community.
Gotta be clear for the homies since the WETH shitposting took on a life of its own
WETH is completely fine and anyone stating otherwise is joking/being sarcastic (or actually being serious because they don't understand that WETH is fine)
Stay safe frens
— sassal.eth 🦇🔊 (@sassal0x) November 28, 2022
Ethereum Price Analysis
For the first time in three weeks, ETH prices are above the middle BB and racing higher versus the USDT per the formation in the daily chart.
Currently, ETH is up 18 percent from November lows. Technically, ETH remains bearish because prices are inside the November 9 bear-engulfing bar. Besides, trading volumes are relatively lower than those of early November, which pushed the coin lower.
Accordingly, if prices are below $1.35k, aggressive traders can unload the coin, targeting $1.1k in the short term.
On the other hand, conservative traders can wait for a breakout above November 9 highs at $1.35k, or $1.1k, below the bear flag.
If buyers take charge, traders can load the dips, targeting $1.7k, or November peaks, in the short term.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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