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

Daily cryptocurrency market performance. Source: Coin360

Like the price of Bitcoin (BTC) fell dangerously close to a large $ 17,000 CME hole, Ether (ETH) price fell below the 20-MA to $ 529. At this level, Ether was oversold on RSI and the bounce 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 20-MA is functioning as a short term resistor and above that, at $ 582, there is a high volume node on the visible volume profile range.

Even if Ether is able to roll back the 20-MA to support, the zone from USD 583 to USD 600 is expected to function as a resistance unless Bitcoin’s price rises through the USD 19,500 level. Although this seems unlikely given that BTC may have its own struggle to push $ 18,800 to $ 19,150.

A few positives for Ether are that the 4 o’clock RSI is about to go through the centerline and the MACD is on track to merge with the signal line. The MACD histogram also shows a decrease in selling pressure, but traders will notice the buying volume decreases as the price approaches 20-MA.

Given the relationship between Bitcoin’s price action and that of altcoins, today’s daily close for BTC will be something to watch. Currently, BTC price is trying to recapture the USD 18,500 level, but a close above the 100 MA at USD 18,600 would be preferable.

A close above 100-MA would give hope to traders looking for the price to retest the 20-MA at $ 18,800 and pave the way for the digital asset to move through the $ 18,800 area to $ 19,150 .

Bulls look poised to recapture $ 590

For the short term, traders can at least breathe a sigh of relief as Ether remained above the USD 521 support, keeping the price from dropping towards USD 475.

Aside from the need to recapture the 20-MA, there is minimal overhead resistance until the price hits the declining trend line aligned with the USD 583 to USD 600 resistance cluster.

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