Ethereum Price Consolidates: Here Are The Next Key Levels To Watch
25 May 2024 - 11:50PM
NEWSBTC
Over some days, the price of Ethereum has been in a consolidation
zone, moving between $3,949 and $3,627. This is a result of the
rally that happened a few days ago which led to the crypto asset’s
price making over 10% movement on the upside. When prices are
consolidating, it can only be considered that it is building
momentum to either break above the consolidation zone or below it.
At this point, we cannot tell the next action the price will take.
In this article, we will see the possible outcome if there is a
break out from the consolidation. As of the time of writing, the
price of ETH was up by 0.66%, trading around $3,752 above the
100-day Simple Moving Average (SMA) in the last 24 hours. Ethereum
On The 4-Hour Chart Looking at Ethereum’s chart on the 4-hour
timeframe, it can observed that the price is trading above the
100-day moving average, suggesting ETH’s price is on a bullish
trend and could break above the consolidation zone. Also, with the
help of the MACD indicator, although the MACD histograms are
trending below the MACD zero line, these are already showing signs
of weakness as the histogram color is becoming faint. The MACD line
and the MACD signal line are also seen moving toward the MACD zero
line but as long as they are still above the zero line, there could
be a possible reverser. With this MACD formation, it could be
suggested that the price of Ethereum is still bullish and there is
a possibility it could break above the consolidation zone Finally,
using the Relative Strength Index (RSI) also to analyze the price
action in the 4-hour timeframe, it can be seen that the RSI line is
attempting to back up after failing to cross below the 50 lines,
suggesting that the price is still bullish. Possible Outcomes If
There Is A Breakout In Either Direction Conclusively, if there is a
break out above the consolidation zone, the price of ETH might
continue to move upward toward the $4,094 resistance level. Should
the price surpass this resistance level, it might move further
upward to create a new high for the year. On the contrary, if
Ethereum breaks below the consolidation zone, the price might begin
to move toward the $3,263 support level. A breakout below this
level might cause a continuous downward movement toward the
$2,864.04 support level. Featured image from iStock, chart from
Tradingview.com
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