The price of the Ethereum is at USD 590 after the bulls bought the ETH dip heavily

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Bitcoin’s collapse to $ 17,650 on December 8th weighed heavily on most altcoins, and Ether was not spared from the carnage.

Daily market performance in cryptocurrencies. Source: Coin360

When the price of Bitcoin (BTC) fell precariously near a large CME gap of $ 17,000, the price of Ether (ETH) below the 20 MA fell to $ 529. At this level, ether became oversold on RSI and the rebound from that region was strong enough to bring the price back to the 20-MA.

ETH / USDT 4-hour chart. Source: TradingView

At the time of writing, the 20MA is acting as a short-term resistance and above it, at $ 582, there is a high volume node in the visible area of ​​the volume profile.

Even if Ether is able to roll back the 20 MA in support, the zone from $ 583 to $ 600 is expected to act as resistance unless Bitcoin price rises above the $ 19,500 level. However, this seems unlikely as BTC may have its own fight pushing $ 18,800 to $ 19,150.

A couple of positives for Ether are that the 4-hour RSI is about to push through the centerline and the MACD is on its way to converging with the signal line. The MACD histogram also shows a decrease in selling pressure, but traders will find that buying volume decreases as the price approaches the 20-MA.

Given the relationship between the price movement of Bitcoin and that of Altcoins, today’s daily closing for BTC will be something to watch. Currently, BTC price is trying to get back to the $ 18,500 level, but a closing price above the 100-MA at $ 18,600 would be preferable.

A closing price above the 100 MA would give hope to traders looking for a price to retest the 20 MA at $ 18,800 and create the conditions for the digital asset to penetrate the $ 18,800 to $ 19,150 range.

Bulls appear poised to recapture $ 590

In the short term, traders can at least breathe a sigh of relief as Ether surged above the $ 521 support that prevented the price from falling to $ 475.

Aside from needing to re-capture the 20MA, there will be minimal overhead resistance until price hits the descending trendline that is aligned with the $ 583-600 resistance cluster.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.