Ethereum Price Forecast: ETH could rally to $4,380 if it maintains a close above the $4,093 resistance
Ethereum is down 3% after sustaining $48.82 million in liquidations in the past 24 hours. The total amount of liquidated long positions accounted for $40.66 million, while short liquidations are at $8.16 million.
The top altcoin has been consolidating within a key rectangle channel in the past seven days after testing and failing to sustain a move above its yearly high resistance at $4,093.
A sustained breakout above this level could see ETH rally toward $4,380. However, a breach of the support level near $3,820 could see a decline toward the support level near $3,550.
The Relative Strength Index (RSI) is below its neutral level, indicating bullish sentiment is waning. The Stochastic Oscillator is in the oversold region. Historically, prices have quickly recovered when the Stoch on the hourly chart enters the oversold region.
A daily candlestick close below $3,550 will invalidate the thesis.