Chart by TradingView
Key Support level: $4,000 , $3,500
Key Resistance level: $4,380
Ethereum’s (ETH) has been consolidating just under its all-time high level and appears ready to make another attempt at breaking it.
In the past few days, bears could not push the price below the support found at $4,000. This is a sign of strength from bulls and signals the market wants to go higher. For this reason, it’s reasonable to expect that ETH can attempt another break of the $4,380 all-time high at any moment.
Trading Volume: The volume of Ethereum continues to decline in anticipation of a break from the structure highlighted in blue on the chart. Volatility is expected to return in the next few days as ETH attempts to break out.
RSI: The RSI has maintained its level just under 70 points. This indicates the bulls are still in control of the price, and bears were unable to bring ETH under $4,000 despite several attempts.
MACD: The histogram and the moving averages are bullish, and any reversal has to see ETH price fall under $4,000. At the time of this post, this appears the less probable scenario.
The bias is bullish as long as the price holds above $4,000. Moreover, the last few daily candles have been positive. Only a sharp rejection at the key resistance level can push ETH lower. To date, the bulls have had the upper hand.
If ETH manages to break above the current all-time high, then a new rally becomes likely, and ETH can explore higher levels, with the first target being around $5,000. If the bears take control of the price, then a quick fall to $3,500 might be in the cards. Right now, the bulls dominate the price action, and their grip on it will be tested as soon as ETH hits the resistance level again.
