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Ethereum is grappling with a critical resistance level at $3,659 as momentum appears to wane. After a period of steady gains, the cryptocurrency has entered a consolidation phase, with the bulls struggling to push it higher. The pause has raised questions about whether Ethereum’s rally is losing steam or simply preparing for its next big move.
This article aims to analyze the current ETH consolidation below the $3,659 resistance level, focusing on its implications for market pressure. It will also determine if ETH can regain its rise or if the loss of strength could lead to further declines through technical indicators, support and potential zones. escape scenarios.
What Key Indicators Say About Ethereum Price
ETH shows strong bearish trend impulse on the 4-hour chart, with its price trying to move towards the $3,360 level and the crucial 100-day simple moving average (SMA). This key level could act as dynamic support, determining the next move. A bounce may follow a successful defense, while a break below could trigger further declines and test lower support zones.
An analysis of the 4-hour chart shows that ETH’s Relative Strength Index (RSI) has fallen to 56%, below the overbought zone. This drop indicates a reduction in buying pressure, suggesting a possible change in market sentiment. As the RSI retraces, it indicates that bullish Sentiment may be fading and the market could be heading towards a consolidation or reversal. If the RSI continues to fall, it would confirm increasing selling pressure, which could lead to deeper corrections.
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Despite holding above the daily 100-day SMA, Ethereum is showing bearish signs, and its price is steadily falling towards the $3,360 level. While the 100-day SMA offers some support, the move lower implies that selling pressure is dominant, weakening bullish momentum. A continued decline could test the strength of the $3,360 support, and a break below it could trigger further losses, signaling a deeper market pullback.
Finally, the 1-day RSI indicates negative growth. pressure in ETH since the signal line fell back to 65%, aiming to move towards the 50% threshold. As the RSI continues to fall towards this threshold, it shows that sellers are gaining dominance, possibly paving the way for additional declines unless buying pressure can change sentiment again.
Will Ethereum find new support or will it sink further?
A key level to monitor is $3,360, which has historically served as a strong support zone. If Ethereum can hold above this level, it could trigger a bounce, pushing the price towards the next one. endurance at the $3,659 mark.
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However, if the price fails to hold above $3,360, ETH may see a notable drop, with $3,051 emerging as the next key support range. A break below this support may open the door for a further bearish move, targeting even lower levels. support zones.
Featured image from Unsplash, chart from Tradingview.com
