After the price of Ethereum reached a new all-time high of $4868 on November 10, the confidence that the price would soon reach $5000 became very high. But on the chart, we saw a completely different situation. After reaching ATH, the price of Ethereum began a correction and even dropped below $4500. However, then the price was able to recover and at the time of publication, Ethereum is trading at $4601.
After an unexpected correction, investors have become cautious in their forecasts. Now it is difficult to say where the price of Ethereum will move. Ethereum address activity has grown by 48% since late September, according to Santiment. At the same time, after the London update, the Ethereum supply does not increase. And soon there may be a shortage in the Ethereum market, which will lead to a new rise in the price of Ethereum. It would seem that circumstances are in favor of Ethereum. But recently, the price of ETH and its trading volumes are forming a bearish divergence.
According to the Santiment, there is a strong bearish divergence between the price of Ethereum and its trading volume. Since the end of October, trading volumes have not increased along with the price, but, on the contrary, have fallen.
On the hourly chart, the ETH/USD pair found support around $4500 and was able to push off to recover some of losses. As a result, the ETH/USD pair returned above $4700. Today we are witnessing a new stage of the bearish correction. Within two hours, the price of Ethereum dropped by $130. At the same time, the ETH/USD pair dropped below the short-term uptrend line and the 100-hour moving average.
In the current situation, the ETH/USD pair is facing immediate resistance around 4735. In case of breaking this level, the pair will receive another resistance around 4800. A close above 4850 could fuel new gains in the short term. In this case, the price may rise to the level of 5000.
On the other hand, we see that the ETH/USD pair dropped below the support of 4650. The next key support is around 4550. A breakdown below this level could send the ETH/USD pair to the area of 4350.