Ethereum (ETH/USDT) Faces Crucial Resistance at $4,249: Will it Breakout or Retest Support?
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
The market for Ethereum against Tether has recently been in a period of consolidation. After reaching a local high, Ethereum has been correcting downward. The price action is forming a series of lower highs and higher lows, indicating a period of uncertainty. Meanwhile, the overall trend is still upward, as the pair appears to be trading extensively between the lower part of the Bands.
As it stands, the stochastic RSI seems to be showing mixed signals, as what seems to be a rise from the oversold region appears to be bending downward. This implies that there could be a pullback or a consolidation phase before any upward movement.
Currently, Ethereum trades at $3,990 with more than 151 thousand traded volumes for the day.
Technical Indicators
Major Resistance Levels: $4,249, $4,500, and $5,000
Major Support Levels: $3,800, $3,748, and $3,500
Ethereum Technical Analysis
Technically, it appears that Ethereum against Tether has recently bounced off its support level around $3,748.73, charging towards $4,200 before hitting a strong resistance level. The price is now trying to regain momentum, potentially targeting the mid-Bollinger Band at $4,248.16. Meanwhile, the price action suggests a possible consolidation pattern as the Bollinger Bands extend to the front without expansion.
From another angle, the Stochastic RSI, which signals the strength of momentum, appears to be tilting to the south despite the earlier bullish signal. This indicates that if buying activities are not intensified above $4,200, a pullback below $3,800 would lead to a further dip.
Ethereum Forecast: Is $5,000 Next?
Ethereum on the daily timeframe from August has been on a corrective pullback towards $3,665. However, it appears that the token appears to be displaying the possibility of a position above $4,100 for a move towards $5,000. Meanwhile, Ethereum is still operating below the trend line of the dominance chart that is checked. To this end, if the bulls can supply more pressure into the market, more dominance will be recorded soon.
ETH/USDT Analysis: Is a Short-Term Bounce Imminent?
On the 4-hour chart, ETH/USDT appears to be showing a similar pattern of consolidation. Meanwhile, the price is fluctuating within the Bollinger Bands and has recently formed a local low near $3,992.41. As it stands, the stochastic RSI in this timeframe is showing that the pair is oversold, suggesting that the current price level might be an opportunity for a short-term bounce.
However, despite the possibility of a potential bounce, the pair might need to build a solid base above $4,078 before confirming a bullish correction above $4,200 in the coming session. To this end, failure to hold above the current level will lead to a deeper pullback.
You can purchase crypto coins here. Buy Crypto
