Ethereum
Is it preparing to move above $4,100?
Ethereum broke consolidation pattern resistance amid news related to ETH spot ETF approval. The reaction of ETH Price as well as the entire crypto space was extremely premature, as markets began to consolidate. Many believed that the news could push the price above $4,000, but before reaching these levels, the bears intensified their activities. As the reaction to the approval was already entrenched, the markets did not have the potential to advance further as there was strong resistance ahead.
Additionally, the price of ETH continued to consolidate and rise. Interestingly, across all time frames, ETH price has established a bullish narrative, indicating that buyers are accumulating strength to trigger a next move aimed at surpassing $3,900. However, ETH price started consolidating in a range and after trading below the $3,817 barrier for a few days, the token finally broke above the range.
Now that the price has broken through the intermediate resistance, followed by accumulation, will ETH price cross the $4,000 pivot level?
ETH price was struggling to surpass $3,800 while bulls battled between $3,730 and $3,750. Nonetheless, with minimum volume, ETH price rose above $3,800, but this rise may not persist for long as technical data suggests reverse action. The MACD is about to turn bearish as the levels are about to undergo a bearish crossover. This could push levels down to the interim support zone between $3,662 and $3,713. However, ADX is rising, suggesting an increase in the strength of the rally. Additionally, the RSI remains along the upper threshold, indicating that the upside may prevail.
Considering all technical aspects, this suggests that Ethereum price could face a slight pullback towards the lower range, which could attract fresh liquidity. If volume continues to stay in the same range, ETH price could continue to rise slightly above $3,900 and reach around $3,915 to $3,920, but could remain constant until the next surge bullish. However, the current market dynamics do not portend a massive change and hence the ongoing squeeze is likely to continue for a few more days.