In recent days, the price of Ethereum has been consolidating between the $3,949 and $3,627 range. This consolidation is a direct result of a recent rally that saw the price of the crypto asset spike upwards by over 10%. When prices are in a consolidation phase, it indicates that the market is building momentum for a potential breakout in either direction. The current uncertainty makes it difficult to predict the next move for Ethereum’s price.
At the time of writing, Ethereum’s price had increased by 0.66%, trading at around $3,752 and above the 100-day Simple Moving Average (SMA) within the last 24 hours. Looking at the 4-hour chart for Ethereum, it is evident that the price is trading above the 100-day moving average, signaling a bullish trend and the possibility of a breakout above the consolidation zone.
Analyzing the MACD indicator, although the histograms are currently below the zero line, the weakening color suggests a potential shift in momentum. The MACD line and signal line are moving towards the zero line, indicating a possible reversal. This formation could mean that Ethereum’s price is still in a bullish trend and may break above the consolidation zone. Additionally, the Relative Strength Index (RSI) on the 4-hour timeframe shows signs of strength as the RSI line attempts to bounce back after failing to drop below the 50 line. This further supports the notion of a bullish sentiment in the market.
If Ethereum manages to break above the consolidation zone, the price could continue its upward trajectory towards the $4,094 resistance level. Surpassing this level might result in Ethereum reaching a new high for the year. On the other hand, if Ethereum breaks below the consolidation zone, it could indicate a bearish trend with potential downward movement towards the $3,263 support level. A breakout below this support could lead to further price decline towards the $2,864.04 level.
The current technical indicators suggest a bullish sentiment for Ethereum’s price, with the possibility of a breakout above the consolidation zone. However, market uncertainty and unforeseen events can always impact price movements, making it crucial for investors to stay informed and monitor the market closely.