Ethereum continues to hover around the $3.1K mark.
A breakout above $3.4K resistance could ignite ETH’s next rally.
The largest crypto asset, Bitcoin (BTC), is in the spotlight in the crypto market, nearing the much-anticipated $100K threshold and setting a new all-time high of $97,862. The BTC rally has driven gains across altcoins, but Ethereum (ETH), the largest altcoin, remains an exception.
As Ethereum lags behind Bitcoin, the price has stepped into the consolidation phase. ETH price soared to $3,420 on November 12, and this level is the crucial resistance. Notably, the asset fluctuates between $3.2K and $3K.
The asset faces strong challenges in breaking through significant resistance levels that could reignite bullish sentiment. According to analysts, a breakout above the crucial resistance could initiate a new upward phase for ETH.
ETH has a modest gain of 0.58% over the past 24 hours. At press time, the asset trades at $3,141, and it has dipped to a low of $3,032. Furthermore, the market observed a liquidation of $65.67 million worth of Ethereum during this timeframe. In the meantime, the daily trading volume of ETH stays at 44.99 billion.
On the other side, the seven-day outlook of Ethereum shows a loss of over 2.45%, completely drenched in red.
The asset began the week trading at $3,209 and ETH visited its weekly low at $3,018. ETH itself hinted at a steady downside correction through its trading pattern.
Is Ethereum Susceptible to a Decline?
Ethereum’s four-hour price chart exhibits the continued downside momentum. A gain beyond the current level will occur only if the asset hits $3.2K. In the scenario where ETH pushes its price higher, it might test the nearby resistance at $3,294. If the asset holds steady, it could surge to $3.4K.
On the other side, if the current declining pace continues, Ethereum could test its nearest support level at $2,915. A potential break below this price range could push ETH to slip even lower and the price might fall to the $2,760 mark.
In addition, the technical analysis of Ethereum exposed the current bearish momentum. The Moving Average Convergence Divergence (MACD) line is likely settled beneath the signal line. This could indicate an upcoming downturn in the market.
Besides, the Chaikin Money Flow (CMF) indicator is situated at 0.08 indicating a brief positive money flow, hinting at a possible surge in demand. Meanwhile, Ethereum’s daily trading volume has increased by over 25.50% to $35.13 billion.
ETH’s current market sentiment is in the neutral zone with the daily relative strength index (RSI) found at 51.69. Moreover, the daily frame of the asset reveals the short-term 50-day moving average above the long-term 200-day moving average.
