Ether is facing a critical resistance level at $3,659 as momentum appears to be fading. After a period of steady growth, the cryptocurrency has moved to consolidation phase during which the bulls try to push it higher. The pause has raised questions about whether Ethereum’s rally is losing momentum or simply gearing up for its next large move.

The purpose of this article is to analyze ETH’s current consolidation below the $3,659 resistance level, focusing on its implications for market pressure. It will also determine whether ETH can regain its rally or if weakening strength could lead to further declines through technical indicators, support zones, and potential breakout scenarios.

What key indicators say about Ethereum’s price

ETH is showing a robust bearish trend momentum on the 4-hour chart, and the price is trying to move towards the $3,360 level and the key 100-day plain moving average (SMA). This key level can act as lively support, guiding the next move. A rebound may occur after a successful defense, while a break below may lead to further declines and test lower support zones.

Analysis of the 4-hour chart shows that ETH’s Relative Strength Index (RSI) has fallen to 56%, down from the overbought zone. This decline signals a reduction in purchasing pressure, suggesting a possible change in market sentiment. This means that the RSI is retreating bullish sentiment may be weakening and the market may be heading towards consolidation or a turnaround. If the RSI continues to decline, it will confirm increasing selling pressure, potentially leading to deeper corrections.

Despite holding above the daily 100-day SMA, Ethereum is showing bearish signs with its price steadily falling towards the $3,360 level. While the 100-day SMA offers some support, a move down means selling pressure is dominating, dampening the bullish momentum. A continued decline could test the strength of the support at $3,360, and a break below it could lead to further losses, signaling a deeper market pullback.

Finally, the 1-day RSI indicates negative growth pressure on ETH as the signal line dropped to 65%, aiming to approach the 50% threshold. As the RSI continues to decline towards this threshold, it shows that sellers are gaining on dominance, which could pave the way for further declines unless buying pressure returns and changes sentiment.

Will Etherum find recent support or fall further?

The key level to monitor is $3,360, which has been a robust support zone in the past. If Ethereum holds above this level, it could trigger a rebound, pushing the price towards the next one resistance at $3,659.

However, if the price fails to hold above $3,360, ETH could experience a noticeable decline, with $3,051 being the next key support range. A break below this support could open the door to an additional downward move directed even lower support zones.

Featured image from Unsplash, chart from Tradingview.com