The Ethereum Price Consolidation Nears End, Eyes $3500 Resistance
The Ethereum price seems to be heading towards the end of the prevailing consolidation as the token is approaching the interim resistance at $3500. Meanwhile, the second-largest token witnessed a massive outflow of ETFs during the last trading day worth over $77 million, which could have dragged the levels slightly lower.
With the ETH price reaching the edge of consolidation, a bullish breakout is expected in the short term, potentially elevating levels to $4000 soon.
Key Points:
- ETH price approaches interim resistance at $3500
- Massive outflow of ETFs worth over $77 million
- Bullish breakout expected in the short term towards $4000
ETH Price Establishes Local Low Range Towards $3500 Target
In the past few days, the ETH price has established a local low range aiming for an interim target of $3500. The token may not experience a strong upswing until it reaches these levels, which have become a strong threshold in the short term. Long-term price action suggests a new all-time high may be further off, with the token likely to remain consolidated below $4000 for a few more months.
Weekly Chart Analysis and Potential Price Movements
The weekly chart of Ethereum prices indicates the token is stuck within an ascending triangle in the long term, with the recent pullback from the $4000 resistance confirming this pattern. Bulls managed to prevent excessive price decline below $3200 and pushed the price back above $3350 to $3400. The RSI remains incremental, while the MACD shows a drop in buying pressure, hinting at a potential bearish turn that could lower levels slightly.
Although volume has dropped significantly, signaling an impending significant move, it also suggests a potential rebound that could push the price towards $4000. However, breaking above this resistance would require a substantial influx of buying volume. If achieved, ETH price could surge and establish a new all-time high, possibly surpassing $5000.
Ethereum’s Outlook in the Altcoin Market
As the new year begins, market participants are anticipating a competitive performance between Bitcoin and Ethereum. Both tokens are expected to do well, with Ethereum possibly outperforming Bitcoin. If this scenario unfolds, Bitcoin dominance could decrease, opening the path for the altcoin market to flourish. With a significant bullish action expected, the Ethereum price may test higher targets in the days ahead.