Ethereum (ETH) shows signs of slowing down this Thursday (17), which reduces the likelihood of the asset reaching new price highs.
With a mere 0.8% daily drop, ETH still holds the $2,600 level as support, but for how long?
Ethereum in consolidation
The price of Ethereum rose by 15% between October 10 and 15, peaking at $2,686. However, the asset has not been able to make any major moves since then, either upwards or downwards.
The Fibonacci retracement of this upward move shows that the asset is in consolidation rather than a correction. This is because the price has not yet fallen below the 0.382 level at $2,552.
This is especially due to the 21-period exponential moving average (EMA) (orange) on the 4-hour chart. As you can see in the image below, this EMA is acting as support for the price.
Ethereum (ETH) chart on TradingView
Read more: Ethereum ETFs – Understand what they are and how they work
The fact that the volume of the last few candles is very low shows that ETH is likely to continue in the current consolidation. However, the 9-period EMA (blue) is in the process of crossing below the 21-period EMA on the 2-hour chart.
If this crossover occurs, and if the RSI on this timeframe drops below the neutral line of 50, the most likely scenario becomes the beginning of a correction towards the price range of $2,511 – $2,469.
This price range will be crucial for the future trend as it could indicate the beginning of a new bounce capable of propelling the price above $2.7K as well as a drop below $2.3K.
The article Ethereum (ETH) Forecast: How Can the Price Behave Today? was first seen on BeInCrypto Brazil.
