Market Overview for Ethereum/Tether (ETHUSDT) on 2025-12-20

Summary
• Ethereum/Tether tested support at $2,970, forming a bullish engulfing pattern following a sharp 5-minute decline.
• RSI showed oversold conditions in the midday selloff, followed by a retest of the 5-minute 20-period MA as resistance.
• Bollinger Bands narrowed midday, indicating low volatility, before a late expansion aligned with the final 5-minute uptick.
• Turnover spiked near $3,000 during the recovery, suggesting institutional participation in the rebound phase.
• A key Fibonacci level at 61.8% (~$2,988) acted as a dynamic resistance, delaying a breakout above $3,000.

Ethereum/Tether (ETHUSDT) opened at $2,985.03 on 2025-12-19 12:00 ET, reaching a high of $3,003.01 and a low of $2,937.33, closing at $2,980.99 by 2025-12-20 12:00 ET. Total 24-hour volume amounted to ~115,000 ETH, with notional turnover of approximately $334.7 million.

Structure & Formations

Price experienced a sharp 5-minute sell-off starting at 18:00 ET, breaking below a key support at $2,970, only to form a bullish engulfing pattern at 20:45 ET. This pattern, along with a retest of the $2,966–2,970 range, suggests a potential short-term bottom. On the daily chart, the 50-period SMA remains above the 200-period SMA, indicating a neutral-to-bullish bias in the broader trend.

Moving Averages

On the 5-minute chart, the 20-period MA acted as a dynamic support near $2,980, with price bouncing off it multiple times before a final breakout attempt. The 50-period MA remained slightly below the 20-period MA, signaling short-term bearish momentum. Daily MAs show Ethereum trading above the 100-period SMA but below the 200-period SMA, reflecting mixed signals in the medium term.

Momentum Indicators

The RSI reached oversold territory (below 30) at 18:00 ET and recovered to mid-50s by the close, suggesting a potential mean reversion.

The MACD crossed above the signal line in the late afternoon, indicating renewed bullish momentum, although divergence with price suggests caution in overbought conditions.

Bollinger Bands & Volatility

Bollinger Bands contracted around midday, narrowing between $2,970 and $2,990, signaling low volatility. This was followed by a late expansion that aligned with the upward push in the final hours. Price closed near the upper band, suggesting strength in the recovery.

Volume & Turnover

Volume spiked during the late afternoon selloff and again in the final hour, aligning with price action. A divergence between volume and price during the 18:00–20:00 ET range indicates potential hesitation in bearish sentiment. The final 5-minute uptick saw strong buying pressure, with volume and turnover confirming the move.

Fibonacci Retracements

A key 61.8% Fibonacci retracement level (~$2,988) acted as a dynamic resistance, with price failing to break above it on multiple attempts. The 38.2% retracement (~$2,976) provided a short-term floor, aligning with the 5-minute 20-period MA.

Ethereum/Tether may continue to consolidate around the $2,980–2,988 range in the next 24 hours, with a potential breakout pending confirmation. Investors should remain cautious of a false break, particularly as divergence in RSI and MACD may suggest a temporary pause in the upward trend.