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Ethereum is struggling with a critical resistance level at $3,659 as momentum appears to be fading. After a period of consistent gains, the cryptocurrency has moved to a consolidation phase, with the bulls having difficulty pushing it higher. The pause raised the question of whether Ethereum’s rally is running out of steam or whether it is simply preparing for its next big move.
This article aims to analyze ETH’s current consolidation below the $3,659 resistance level, focusing on its implications on market pressure. It will also determine whether ETH can regain its upward momentum or whether a decrease in strength could lead to further declines through technical indicators, support zones, and potentials. burst scenarios.
What key indicators say about Ethereum price
ETH shows sharp decline momentum on the 4-hour chart, its price attempting to move towards the $3,360 level and the crucial 100-day simple moving average (SMA). This key level could serve as dynamic support, determining the next move. A bounce may follow a successful defense, while a break below could lead to more 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%, down from the overbought zone. This decline signals a reduction in buying pressure, suggesting a possible change in market sentiment. When the RSI pulls back, it indicates that bullish sentiment could fade and the market could head towards consolidation or reversal. If the RSI continues to fall, this would confirm increasing selling pressure, potentially leading to deeper corrections.
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Although it remains above the 100-day daily SMA, Ethereum is showing bearish signs with its price steadily declining towards the $3,360 level. Although the 100-day SMA offers some support, the downward move implies that selling pressure is dominant, weakening the bullish momentum. A continued decline could test the strength of the $3,360 support, and a break below could lead to further losses, signaling a deeper market pullback.
Finally, the 1-day RSI indicates negative growth pressure on ETH since the signal line has fallen back to 65%, aiming to get closer to the 50% threshold. As the RSI continues to decline towards this threshold, it shows that sellers are gaining dominance, perhaps opening the way for further declines unless buying pressure returns to shift sentiment.
Will Ethereum find new support or sink further?
A key level to watch is $3,360, which has historically served as a strong support area. If Ethereum can hold above this level, it could trigger a rebound, pushing the price towards the next level. resistance at the $3,659 mark.
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However, if the price fails to sustain above $3,360, ETH could see a notable decline, with $3,051 becoming the next key support range. A break below this support could open the door to further downward movement, targeting even lower rates. support areas.
Featured image from Unsplash, chart from Tradingview.com
