Ethereum At A Crossroads: Big Move Coming After Consolidation Phase?
With the way ETH’s price is moving, it may move on to test the upper base of the consolidation.
Ethereum, the second-largest cryptocurrency by market capitalization, is currently at a critical juncture as its price enters a consolidation phase. This period of price stability, marked by a narrow trading range, has left traders and investors in a state of uncertainty.
With Ethereum’s price hovering around key support and resistance levels, market participants are closely monitoring technical indicators and market signals to anticipate the next move. The current consolidation reflects a balance between bullish optimism and bearish caution, creating an environment of indecision that could lead to significant volatility once a breakout direction is established.
This analysis delves into examining Ethereum’s current price state to determine its potential future price action.
Market Overview: Ethereum Current Trends And Analysis
Currently, on the 4-hour chart, the price of Ethereum is moving upward toward the upper level of the consolidation zone but is still trading below the 100-day Simple Moving Average (SMA).
A careful examination of the 4-hour Composite Trend Oscillator reveals that ETH’s price may still move upward as both the signal line and the SMA of the indicator are trending above the zero line. From this formation, it can be suggested that Ethereum may likely move to test the upper base of the consolidation before dropping again.
On the 1-day chart, ETH is actively bullish, moving toward the upper base of the consolidation zone while still trading above the 100-day SMA. With the way ETH’s price is moving, it may move on to test the upper base of the consolidation.
The 1-day Composite Trend Oscillator indicator reveals that although ETH is currently bullish, it may go bearish in the long run as both the signal line and the SMA are attempting to cross below the zero line.
Potential Scenarios: What’s Next For ETH?
A look at potential future scenarios for Ethereum’s movement post-consolidation suggests that if the price of ETH breaks above the upper base of the consolidation, it will begin to move upward toward the $4,099 resistance level. If the price breaches this level, it may move on to test its all-time high of $4,863.
In contrast, should the crypto asset break below the lower base of the consolidation, it will begin to move downward toward the $2,865 support level. If this level is breached, it will continue to move downward to test the $2,147 and probably other lower levels.
As of the time of writing, ETH was trading at around $3,607 and was down by 1.82% with a market capitalization of over $440 billion and a 24-hour trading volume of over $13 billion. Although its market capitalization is down by 1.77%, its trading volume has increased by 28.93% in the past day.
ETH trading at $3,589 on the 1D chart.
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