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Ethereum’s recent price movements highlight a period of consolidation following its rejection near the significant $3.5K resistance level.
This phase suggests a potential pullback to the $3K region, coinciding with the 200-day moving average, which could serve as a platform for the next bullish leg.
By Shayan
The Daily Chart
Ethereum has shown remarkable bullish strength, breaking above the $3K resistance zone, now a key support level. The cryptocurrency’s positioning above the 100-day and 200-day moving averages further solidifies the positive trend. However, resistance near the $3.5K zone triggered a correction toward the 200-day MA around $3K.
This area is critical for maintaining Ethereum’s bullish outlook in the medium term.
Should the correction hold above this support, the price could resume its upward journey, targeting fresh resistance levels. With the RSI currently at equilibrium, ETH retains room for growth before encountering overbought conditions. The $3.5K zone remains a pivotal challenge, aligning with previous highs and significant supply zones.
The 4-Hour Chart
Ethereum’s bullish structure is intact in the 4-hour timeframe, characterized by the price consistently breaking past its prior highs.
After its recent surge, the price encountered resistance at the $3.5K mark and has since entered a consolidation phase around the $3K level. This region aligns with the retest of a previously broken trendline, forming part of a flag pattern.
The RSI on this timeframe reads 52, indicating a neutral momentum. This suggests Ethereum may continue to consolidate in the near term or potentially gear up for another attempt at breaking the $3.5K resistance. Successfully surpassing this level could trigger renewed bullish momentum and higher price targets. However, losing the $3K support could signal a temporary weakening, warranting close monitoring for further price developments.
This article first appeared at CryptoPotato
