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Ethereum Price Prediction: ETH/USD bids $400 goodbye as consolidation kicks in – Confluence Detector

  • Ethereum’s recovery bid stalls around $385; consolidation is likely to take over.
  • Ethereum upside is limited by a high concentration of bears at $390 and $398 respectively.

Ethereum price is slightly in the green after diving to the support at $370 earlier in the week. Support formed at $380 remains key to the bullish case eyeing highs far above $400. Meanwhile, Ether is trading at $386 amid expanding volatility and a bullish trend (short term).

The price is also trading above the moving averages as a show of strength from the bulls. Moreover, this means that Ethereum will have potential support levels in the event of extreme losses. The 50-day SMA holds the ground at $342.93 and the 200-day SMA is holding the position at $239.

The indicators in the 4-hour range appear to be sending mixed signals. For example, the RSI is leveling the midline which means that ETH will favor consolidation in the short term. On the other hand, the MACD highlights a stronger bearish grip as it falls towards the negative region. Moreover, the indicator features a bearish divergence, further cementing the influence sellers have over the price.

ETH/USD daily chart

ETH/USD price chart

According to the confluence detector tool, Ethereum is glancing into a tougher resistance area at $390. The seller congestion zone is highlighted by the previous high 15-minutes, the Bollinger Band 15-minutes upper, the 100 SMA 1-hour and the pivot point one-month resistance one. As if this resistance zone is not enough, the tool places another strong hurdle at $398. This second resistance is home to the pivot point one-day resistance one, the previous high one-day and the SMA ten one-day.

Price action above $400 is unlikely to come easy based on the prevailing technical picture. However, if Ether is able to rise above $400, buyers would encounter resistance at $402, $406 and $410.

On the downside, there is an immense distribution of support levels starting with $382.21. This region hosts the Fibo 38.2% one-day, the SMA ten and the SMA 50 15-minutes. Other key confluence support areas include $378, $374 and $366. If push comes to shove, much lower support areas are highlighted at $349.87 and $345 respectively.

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Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

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