- ETH price has consolidated within a continuation formation since the initial sessions of December.
- A technical indicator highlights a potential bounce by Ethereum.
- Slicing past $4,099 may see ETH on an upward move, gaining 22%.
Ethereum (ETH) had its price in sideways trends within a consolidation formation since 3 December. The leading alternative coin has printed a bullish gesture, indicating that the crypto might be prepared to reverse the underperformance period.
ETH May Encounter Challenges Recovering
The 4Hr price chat shows Ethereum formed a symmetrical triangle setup. That comes as the alt faces consolidation. Nevertheless, the Momentum Reversal Indicator indicates that Ether can bounce upward. The MRI displayed a bottom sign as the cryptocurrency neared the prevailing chart formation’s lower border.
However, ETH might face challenges in its potential recovery due to the multiple headwinds that emerged. The initial resistance line stands at 100 4hr SMA at $3,960, then 38.2% FIB retracement area, corresponding with 21 4hr Simple Moving Average at $3,988.
More resistances might emerge at the 50 4Hr Simple Moving Average around $4,020 before ETH approaches the dominant technical pattern’s upper boundary of $4,099. Slicing past these hurdles will open the path for a 22% increase, the prevailing chart’s prediction.
Nevertheless, ETH’s price might face a challenging hurdle near 200 4hr Simple Moving Average at $4,112, corresponding with the Momentum Reversal Indicator’s resistance area. Further headwinds may showcase at 50% retracement area of $4,138, then 61.8% FIB retracement zone at $4,288, then 78.6% FIB retracement area at $4,502.
If Ethereum attracts more selling pressure, ETH price will secure dependable support around 23.6% FIB retracement mark near $3,803. More defense lines will appear at 16 December low of $3,645, then 4 December lowest level of $3,511.
Meanwhile, slicing under the symmetrical triangle pattern’s lower border at $3,768 might expose the alt to a 22% crash towards price levels at $2,934.
Though the recovery hopes, Ethereum might rely on BTC price actions. A decisive Bitcoin move past $50K might trigger upswings for Ethereum. At this publication, Bitcoin battled with bearishness at $47,842.
You can share this article.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.