Since December 4, the price of Ethereum (ETH) is trading within a symmetric triangle. Right now, it is near the top of the triangle and a break above the psychological level of 4,000 is likely to confirm a bullish move with targets towards 6/8 Murray around 4,375.
On the other hand, if Ether trades below 3,850, it could continue oscillating within the symmetric triangle until a break is confirmed. A break below the 4/8 Murray around 3,750 could accelerate the downward move towards the zone of 3,437.
Market sentiment caused by the US Central Bank decision is playing a negative role for Ether and Bitcoin. Given that the US plans to increase the interest rate for next year, Bitcoin and altcoins are expected to be under downward pressure. A drop is expected in the case of BTC towards $ 30,000 and ETH towards $ 2,500.
Some investors are still betting on the forecast that Bitcoin should hit $ 100,000 before the end of the year. However, BTC and Ether are also currencies that trade against the US dollar. Whatever decision the Fed makes and announces in the coming months, this will certainly affect BTC and ETH.
Another factor that could hamper the rally in ETH could be the news regarding the Omicron variant. If the contagion continues to increase and the world economy weakens, it will consequently affect ETH and could dampen market sentiment.
Investors are likely to avoid taking bullish positions which would cause a sudden correction and trigger further declines ETH, so the could go as far as the psychological level of $ 3,000.
Our trading plan for the next few hours is to wait a break of the symmetrical triangle above $ 4,000 is confirmed. Then, we can buy with targets at 4,375.
On the contrary, if ETH trades below the SMA of 21 (3,900), it will be a signal to sell with targets at 3,437.
The eagle indicator is hovering below a downtrend channel and is likely to continue giving negative signal for the next few days.