After Prolonged Consolidation for ETH, is $2.1K Still Possible? (Ethereum Price Analysis)

Ethereum has been struggling with the 100-day moving average, which is at $1,772, for an extended period. However, the price action at this crucial level did not clearly indicate any upcoming trend. On the other hand, the hack has the potential to trigger an instant chain.

Technical Analysis

by Cheyenne

daily chart

After the short-term consolidation phase, the price witnessed a decline towards the 100-day moving average at $1.7K. The recent PA of Ethereum failed to provide a definite trend, with prices consolidating and printing very small green and red candles. This has left the market in a state of extreme uncertainty.

However, the cryptocurrency is facing two important levels of support: the 100-day moving average at $1,772 and the large support area at $1.7k. Therefore, if $1.7K prevents further decline, there is potential for an upside aiming at the $2.1K resistance area.

4 hour chart

On the 4-hour timeframe, the price continued its bearish trend towards the $1.7K support area. However, after reaching this level, it formed a slight bounce and entered a consolidation state characterized by very small candles.

At the same time, a falling wedge pattern can be observed on the 4-hour time frame, with the price currently consolidating within the narrow range. The lower trend line of the wedge coincides with the important support area at $1.7K, making it a strong level.

Ultimately, a break-down of the $1.7K support area and lower falling wedge could trigger a cascade with long positions liquidation and selling pressure. Conversely, if the price finds support, it is likely to target the middle border of the channel and even the resistance area at $2.1K.