The price of Ethereum has been fluctuating within a consolidation zone, ranging from $3,949 to $3,627. This follows a recent rally that resulted in a 10% increase in the price of the cryptocurrency. The current price stands at around $3,752, showing a 0.66% rise above the 100-day Simple Moving Average (SMA).
Analyzing Ethereum’s chart on the 4-hour timeframe reveals that the price is trading above the 100-day moving average, indicating a bullish trend. The MACD indicator shows signs of weakness, with histograms trending below the zero line. However, the fading color of the histograms and the movement of the MACD and signal lines towards the zero line suggest a possible reversal. This formation indicates that Ethereum’s price may break above the consolidation zone.
The RSI on the 4-hour timeframe shows that the price of Ethereum is still bullish, as the RSI line is attempting to move back up after failing to drop below the 50 line. This further supports the theory of a potential breakout above the consolidation zone.
If Ethereum breaks out above the consolidation zone, the price could continue to rise towards the $4,094 resistance level. Surpassing this level may lead to further upward movement, possibly resulting in a new high for the year. On the other hand, a breakout below the consolidation zone could push the price towards the $3,263 support level. Further downward movement below this level may indicate a bearish trend towards the $2,864.04 support level.
Based on the current price movement and technical indicators, there is a possibility of Ethereum breaking out of the consolidation zone. Traders and investors should closely monitor the price action and be prepared for potential bullish or bearish scenarios in the near future.