price for a few days Ethereum It was in consolidation territory, moving between $3,949 and $3,627. This is the result of a rally that occurred a few days ago, which saw the price of the cryptocurrency rise by more than 10%.
If the price is moving sideways, it can be considered that it is building momentum for an upward or downward breakout of the sideways trend. At this point, we don’t know what price’s next move will be.
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In this article, we will look at the possible consequences if integration is interrupted. At the time of writing, ETH price is up 0.66% and trading about $3,752 above its 100-day simple moving average (SMA) over the last 24 hours.
Ethereum on 4-hour chart
If you look at the 4-hour Ethereum chart, you can see that the price is trading above the 100-day moving average, which suggests that the ETH price is trending sideways. bullish trend It can go beyond the realm of integration.
Additionally, with the help of the MACD indicator, the MACD histogram is trending below the MACD 0 line, but it is already showing signs of weakness as the histogram colors are fading.
The MACD line and the MACD signal line also appear to be moving towards the MACD 0 line, but as long as they are still above the 0 line, a reversal is likely to occur.
This MACD formation could suggest that Ethereum price is still bullish and is likely to break above the consolidation zone.
Lastly, as a result of analyzing the price movement on a 4-hour basis using the relative strength index (RSI), we can see that the RSI line failed to cross below the 50 line and then attempted to rebound, suggesting that the price is still high. optimistic.
Possible outcomes if a breakout occurs in either direction
In conclusion, a break above the consolidation area could cause ETH price to continue rising towards the $4,094 resistance level. If the price breaks above this resistance level, it may rise further to hit a new high this year.
Conversely, if Ethereum falls below the consolidation area, the price may start moving towards the $3,263 support level. A break below this level could trigger a continued downward move towards the $2,864.04 support level.
Featured image from iStock, chart from Tradingview.com
Source: NewsBTC.com