Market Overview: Ethereum/Eurite (ETHEURI) – Volatility and Key Levels in Focus

Summary
• Price tested key resistance near 2605.56 before retreating, indicating potential bearish bias.
• RSI and MACD signal overbought conditions in late-session rally, hinting at short-term profit-taking.
• Bollinger Bands show moderate volatility expansion, with price near the upper band in early morning.
• Volume declined after 05:00 ET, suggesting diminished momentum in directional moves.

Ethereum/Eurite (ETHEURI) opened at $2541.20 on December 21 at 12:00 ET, touched a high of $2605.56 and a low of $2535.09, and closed at $2602.82 on December 22 at 12:00 ET. Total volume was 15.99, with a 24-hour notional turnover of $40,947.69.

Structure & Formations

Price found resistance at $2605.56, a Fibonacci 61.8% level from the prior 5-minute swing, and reversed sharply after hitting this zone. A bearish engulfing pattern formed at 02:15 ET when price closed below the prior candle's low. Later in the session, a bullish morning star appeared near $2584.70, suggesting potential for a rebound.

Moving Averages

On the 5-minute chart, the 20-period and 50-period moving averages diverged after 05:00 ET, with the 20-period pulling ahead briefly. On the daily chart, the 50-period MA remains below the 100- and 200-period lines, indicating a longer-term bearish bias.

Momentum & Indicators

MACD crossed into positive territory after 01:00 ET but failed to maintain bullish momentum past 06:00 ET. RSI climbed above 70 during the late morning spike, signaling overbought conditions. However, a sharp decline in the afternoon pulled RSI back below 60 by 07:00 ET.

Volatility & Bollinger Bands

Volatility expanded during the 00:00–03:00 ET period, pushing price near the upper Bollinger Band. A contraction followed in the late morning, suggesting a potential consolidation phase.

Fibonacci Retracements

Key support levels from the 24-hour low were identified at $2579.54 (38.2%) and $2556.29 (50%). Price briefly tested both levels but recovered without breaking below, indicating strong near-term support.

The forward-looking bias suggests a possible test of key support levels in the next 24 hours, especially if volume fails to confirm a bullish breakout. Investors should remain cautious of divergences in momentum indicators and volatility shifts.