•  Ethereum price stalls near the critical $3,500 price level.
  • Consolidation between $3,300 and $3,500 may continue until early April.
  •  Very few warning signals for a broad sell-off exist, but downside risks remain a concern.

Ethereum price action looks poised to take a breather before continuing its spectacular run. After two consecutive days of late-session selling pressure, buyers appear apprehensive for the first time in over three weeks.

Ethereum price could see profit-taking before pushing on towards $4,000

Ethereum price is having some difficulty cracking the $3,500 resistance level. That difficulty is not much of a surprise when you consider the collection of resistance at $3,500: the weekly Kijun-Sen and 100% Fibonacci expansion. Achieving a breakout above this level will likely create another massive bullish drive for ETH.

The daily Relative Strength Index remains in bull market conditions and is not yet at the first overbought level of 80. This suggests that the Ethereum price could continue to push higher to at least the $3,800 value area. But even if that occurs, buying pressure may not cease. The weekly Relative Strength Index is just coming out of the long congestion zone of trading between the oversold levels of 40 and 50 since the beginning of 2022.

Additionally, because many new traders continue to view, incorrectly, the RSI as overbought as 70, Ethereum bulls may be developing a bear trap near $3,500. The interpretation of 70 as an overbought level was changed in 2012 with Connie Brown's groundbreaking work, 'Technical Analysis for the Trading Professional' – required reading for the CMT certification.

Upside potential could extend as high as the 161.8% Fibonacci expansion at $4,550. Downside risks are likely limited to the bottom of the bull flag and top of the Ichimoku Cloud (Senkou Span A) at $3,175.

ETH/USD Daily Ichimoku Kinko Hyo Chart

Downside risks for Ethereum price should be limited to the $3,000 value area, where the 50% Fibonacci retracement and daily Kijun-Sen exist.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP