FX.co ★ Technical Analysis of ETH/USD for December 28, 2023

Evaluating ETH/USD Recent Highs and Potential Reversal

Impact of High-Profile Crypto Transactions: Analyzing Trump's ETH Sales

Trump's Transition from NFT Creator to Ethereum Seller

Donald Trump, known for his mixed views on cryptocurrencies, has recently begun selling Ethereum (ETH). He accumulated this ETH through the sale of his NFT collection. Since December 8, Trump has transferred 1,075 ETH, approximately valued at $2.4 million, to Coinbase. This move, executed in 13 transactions, signifies a notable shift in his engagement with digital currencies.

NFT Ventures and Cryptocurrency Dynamics

Trump's foray into NFTs, despite his skepticism about cryptocurrencies, is intriguing. His NFTs, portraying him in various roles, were sold for ETH. This juxtaposition of Trump's past statements against cryptocurrencies with his current actions offers insight into the complex relationship between public figures and digital assets.

Market Response to Trump's Cryptocurrency Movements

The sale of ETH by a high-profile individual like Trump can influence the cryptocurrency market. It highlights the evolving narrative around digital assets, especially in the context of political figures. Trump's engagement with Ethereum, given his significant influence, might have implications for market sentiment and investor behavior.

Trump's Political Ambitions and Crypto Engagement

Amid his renewed presidential campaign, Trump's cryptocurrency transactions draw attention. His actions could reflect broader trends in how political figures interact with digital assets. As Trump positions himself for the 2024 election, his involvement with cryptocurrencies could intersect with his political narrative.

Technical Analysis of ETH/USD: Current Trends and Key Levels

ETH/USD Price Movement:

The ETH/USDT pair has bounced from the internal trend line support seen around the level of $2,192 and was keep moving up until the bulls made a new swing high at the level of $2,444. The intraday technical support is seen at $2,375, $2,389 and $2,400. The intraday technical resistance is located at $2,424. Only a sustained breakout below the last swing low seen at $2,180 would change the outlook to bearish.

Momentum and Market Conditions:

The H4 timeframe shows the momentum indicator entering extremely overbought territory, suggesting a possible pullback.

Weekly Pivot Points: Important Markers

• WR3: $2,444
• WR2: $2,333
• WR1: $2,280
• Pivot: $2,228
• WS1: $2,172
• WS2: $2,120
• WS3: $2,012

These points are crucial for identifying potential support, resistance, and trend reversals.

Long-Term Trading Outlook for ETH/USD

The market has been bullish since reaching a low at $1,520. Key support at $1,368 is pivotal for maintaining a bullish outlook. Mid-term support at $1,913 is also critical. A break below this could indicate a more bearish long-term trend.

Intraday Indicator Analysis

• Buy Signals: 15 out of 23 indicators
• Sell Signals: 5 indicators
• Neutral Signals: 3 indicators
• Moving Averages: 13 indicate Buy, 5 indicate Sell

Market Sentiment: Predominantly Bullish

Current sentiment is bullish (77% bulls vs. 23% bears), consistent with last week (76% bulls) and the past three days (71% bulls).

Strategic Trading Insights

For bullish traders, the focus should be on maintaining levels above key supports, particularly $2,192 and $1,368. The current momentum suggests potential for further gains, but caution is advised due to the overbought conditions.

Bearish traders should watch for a break below $2,180, which could signal a shift to a bearish trend, potentially targeting mid-term support at $1,913.

Useful Links

• More Artcles
• InstaForex Course for Beginners
• Open Trading Account

Important Reminder

The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.

Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.

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