Ethereum price appears to have stuck up within a narrow range, yet above $3000 wherein a pullback could drag below these levels
Where the price is expected to pull a leg up after healthy consolidation, yet the fear of dumping below key levels at $3000 also cannot be neglected
Yet the rebound is expected to be a notable one with a surge above these levels to form new ATH beyond $4400
As the most dominant crypto Bitcoin price smashed $50,000 levels, the entire crypto space followed a similar path. Ethereum price also jumped above $3200 and aimed to break the upper resistance at $3605. But with a couple of rejections at $3340, compelled the ETH price to hover around $3000.
Despite a notable fight back, the indicators point out towards a substantial bearish divergence haunting the rally. The price held a strong grip over the uptrend a month ago, and the current pullback is testing the trend. If the selling intensifies, the possibility of breaking down the trend line could surface the waters.
The indicators were pretty bullish as the market flipped in the favour of bulls. But with the accumulation, the trend showcases a bearish divergence. The RSI is slowly tumbling down whereas MACD displays extensive selling. The passiveness of the bulls yet remains a matter of concern as only mounting buying pressure could break through the consolidation.
No doubt the Ethereum price is still self-assured to hit the highs and continue to rally towards the milestone at $5000. However, the need of the hour is to prevent the ETH price to visit the support zone. A slippage from this zone could enable the price to hit lower lows where-in a notable bounce back may require enormous efforts.