Ethereum fell below the $3,700 threshold and failed to break through the consolidation channel. If the price fails to rally, we could see another period of consolidation where the moving average could reach the huge volatility seen a few weeks ago and potentially provide some ground for a continuation of the rally.
Ethereum fell below the $3,700 threshold and failed to break through the consolidation channel. If the price fails to rally, we could see another period of consolidation where the moving average could reach the huge volatility seen a few weeks ago and potentially provide some ground for a continuation of the rally.
Since this level has been a crucial support area for ETH, the recent drop below $3,700 is especially raising some concerns and questions. If it falls below, it may indicate that the bulls need to regroup as the bears become more powerful.
Wild swings in price action are characteristic of a volatile asset like Ethereum. Based on the current trend, it seems that ETH is having a difficult time maintaining its upward momentum.
Ethereum went through a consolidation phase, fluctuating between support and resistance levels, as the chart illustrates after a significant rally. This type of activity usually occurs before a notable change in price, either up or down.
Mushumir to the fullestFailure to hold could lead to a deeper decline towards the 200-day moving average, a more reliable measure of long-term trend direction. In the short term, this could mean a higher downside risk. An important additional consideration is volume.
Above-average trading volumes were observed alongside the recent decline, suggesting that sellers are more active. This could indicate that more traders are trimming their positions, which would put more pressure on the price to drop. The RSI, on the other hand, hovers around the neutral point. This shows that Ethereum has room to recover if the market mood changes and is neither overbought nor oversold.
