Ethereum (ETH/USDT) Consolidates Near $3,500 After Rally: What’s Next?
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The market for Ethereum against Tether appears to have experienced a slight decline of 1.03% over the last 24 hours, with the bears pulling the price down to $3,202. This development indicates that the pair is lagging behind the broader market, which experienced a gain of 0.12% at the same time. As it stands, this price movement followed a strong 13.2% rally over the last 30 days, during which the price prepared to build a base above the $3,400 zone.
Meanwhile, market signals remain mixed, particularly from an institutional perspective. The overall demand for Ethereum in recent times has lacked consistency, despite the spot ETF experiencing a massive $175 million inflow on January 14. This has limited the pair’s ability to break out as the token struggles with the $3,300 zone.
Currently, Ethereum trades at $3,363.22 with over 140,000 volumes on the daily chart.
Technical Indicators
Major Resistance Levels: $3,375, $3,500, and $3,750
Major Support Levels: $3,000, $2,900, and $2,750
Technical Analysis
On the daily chart, Ethereum against Tether recovered sharply from the previous month’s low as the price now consolidates slightly below $3,500. In recent times, the price has climbed above the shorter moving averages with the anticipation that the 200 simple moving averages at $3,645 would turn to support soon. However, it appears a symmetrical triangle has formed, reflecting the current fight between the bulls and bears, with the price struggling to maintain the $3,300 support level.
From another perspective, the Stochastic RSI shows the price still has a small space to the north; meanwhile, this may signal the need for a pause due to the overbought condition. However, a sustained break above $3,375 with volume would make a break above $3,500 possible; otherwise, a price action below $3,000 would negate such a move.
Ethereum Update
Recently, Ethereum has been displaying a similar pattern to Bitcoin on the 1-hour timeframe. This suggests the token may be near a top around the $3,500 level. The micro support seems to be around $3,295. However, it appears the coin is working on a wider upside move by pulling back slightly. To this end, of the $3,213, critical support continues to hold, and a bounce could be seen; otherwise, this would be an indication of a potential decline.
ETH/USDT Analysis: Struggling to Maintain Momentum
On the 4-hour chart, ETH/USDT appears to be gearing up for more upside action as the price trades above the critical support areas. Though this action suggests extensive bullish action with a potential pullback, the rising of the shortest moving average line seems to be signaling the bulls still have some steam left. However, the positioning of the Stochastic RSI in this timeframe suggests caution as the lines point downward. This suggests that short-term profit-taking may be ongoing.
To this end, without a break above $3,375 in the coming session, a continuation in the direction of the momentum oscillator may bring the price down below $3,000.
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