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Ethereum It is grappling with a critical resistance level at $3,659 as momentum appears to be waning. After a period of steady gains, the cryptocurrency has moved to a level Unification The phase, where the bulls are struggling to push it higher. The pause has raised questions about whether Ethereum’s rally is running out of steam or simply preparing for its next big move.
This article aims to analyze the current consolidation of ETH below the $3,659 resistance level, focusing on its implications for market pressure. It will also determine whether ETH can regain its rally or whether fading strength could lead to further declines through technical indicators, support areas and probabilities. Go Scenarios.
What do the main indicators say about the Ethereum price?
ETH is showing a strong decline batch On the 4-hour chart, its price is trying to move towards the $3,360 level and the 100-day simple moving average (SMA). This key level can act as dynamic support, determining the next move. A bounce may follow a successful defense, while a break below may lead to further declines and a test of lower support areas.
An analysis of the 4-hour chart shows that the Relative Strength Index (RSI) for ETH has fallen to 56%, falling from the overbought zone. This decline indicates lower buying pressure, indicating a potential shift in market sentiment. As the RSI declines, it indicates this rising Sentiment may fade, and the market may be heading towards consolidation or reversal. If the RSI continues to decline, it will confirm increased selling pressure, which could lead to deeper corrections.
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Despite remaining above the 100-day daily simple moving average, Ethereum is showing bearish signs, with its price steadily falling towards the $3,360 level. While the 100-day simple moving average is offering some support, downward movement indicates that selling pressure is dominant, weakening the upward momentum. A sustained decline could test the strength of the $3,360 support level, and a break below it could lead to further losses, indicating a deeper pullback in the market.
Finally, the 1-day RSI indicates a negative trend pressure On ETH since the signal line has dropped to 65%, aiming to move towards the 50% threshold. As the RSI continues to fall towards this threshold, it shows that sellers are gaining dominance, which could pave the way for additional declines unless buying pressure can return to change sentiment.
Will Ethereum find new support or sink further?
The key level to watch is $3,360, which has historically been a strong support area. If Ethereum can hold above this level, it could trigger a rebound, pushing the price towards the next level resistance At the $3,659 mark.
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However, if the price fails to sustain above $3,360, ETH could see a notable decline, with $3,051 emerging as the next major support range. A break below this support could open the door to additional downward movement, targeting lower levels supports regions.
Featured image from Unsplash, chart from Tradingview.com
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