$ETH Price Prediction 12/22/2021

ETH refuses to budge as we attempt a first close on daily MACD divergence; another potential hammer pattern forming on H4 although we may not be as fortunate this time.

Retraction on H4 candle did not pass trendline high (just 'extreme') which is a good sign, but the fact that we didn't hit 200EMA (~4100) off the breakout is a concern.

IMO it's very possible that price consolidates somewhere between low 3900 and high 4000 for the next few days.

We may even see a slight drop after that which could position us near 4000-4050 EOY.

*** Hypothesis: ETH eventually stabilizes around 4000. We may see highs of 6000 and lows of 2000-3000 but overall a just 4k coin. This goes back to the "cost vs utility" thought basically stating 'at what point does the average/new investor deter from ETH due to a price out'. Unlike BTC which carries a 'gold' value (scarcity), ETH is valued strictly off how useful it is. Therefore, the only way I see ETH increasing value overall would be to increase an aspect of its utility (i.e. NFT community increases floor prices while maintaining a similar demand).