Ethereum is encountering significant resistance at $3,659, and its momentum seems to be diminishing. Following recent gains, the cryptocurrency has entered a consolidation phase, causing speculation about its future trajectory. The article analyzes Ethereum's consolidation below the resistance level and its effects on market dynamics, using technical indicators, support zones, and breakout scenarios to assess its potential direction.
The 4-hour chart reveals strong bearish momentum as ETH approaches the $3,360 level and the critical 100-day Simple Moving Average (SMA), a potential dynamic support. A rebound could occur if this support is defended, but a break below it might trigger further declines. Ethereum's RSI on the 4-hour chart has fallen to 56%, indicating a decrease in buying pressure.
Despite hovering above the daily 100-day SMA, Ethereum is showing signs of bearish sentiment with its price moving towards $3,360. If the downward trend continues, Ethereum could test this support, and a break below might suggest a more significant pullback. The daily RSI's drop to 65% highlights growing negative pressure on Ethereum.
If Ethereum holds above $3,360, it may rebound towards $3,659 resistance. However, slipping below $3,360 could lead to a notable downswing, with $3,051 as the next support. Further breakdowns could target even lower levels, and investors should monitor these critical zones to anticipate future price movements.
