Ethereum Price Consolidates After Failing to Break Above $4,750
After failing to extend gains above $4,750, Ethereum has entered a consolidation phase and may find it challenging to rise above $4,600 in the short term. The cryptocurrency started a downside correction below $4,620 and $4,600, trading below the 100-hourly Simple Moving Average. A key bullish trend line with support at $4,560 was also broken, signaling a potential continuation of the downward movement if the price trades below $4,420.
Ethereum Price Corrects Gains
Following a surge above $4,600 and $4,620, Ethereum tested the $4,750 resistance level before experiencing a pullback. The price dipped below $4,600 and the aforementioned support levels, leading to a test of the $4,440 zone. Currently, Ethereum is consolidating losses below $4,550 and the 100-hourly Simple Moving Average.
On the upside, resistance levels to watch include $4,520 and the 23.6% Fib retracement level of the recent decline from the $4,759 high to the $4,435 low. The next major resistance is at $4,600, followed by $4,650 and potentially $4,720. A break above these levels could pave the way for further gains in the near term.
More Losses In ETH?
If Ethereum fails to break above the $4,600 resistance, a fresh decline could be on the cards. Initial support is seen at $4,440, with a more significant level at $4,420. Further downside movement could see Ethereum testing the $4,320 support, with a potential drop towards $4,250. The key support level to watch is at $4,150.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is showing signs of losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD has dipped below the 50 zone, indicating a bearish sentiment.
Major Support Level – $4,420
Major Resistance Level – $4,600
Overall, Ethereum’s price action suggests a period of consolidation and potential downside risks if key resistance levels are not breached. Traders and investors should closely monitor the $4,600 resistance level for clues on the next direction of Ethereum’s price movement.