Ethereum (ETH) increased by 10% after cracking the crucial resistance zone at $3,600. This area now serves as the initial support.
- Vital support level – $3,600
- Vital resistance level – $3,900
The 2nd-largest digital coin consolidated below its current resistance level, located at $3,900 during weekend sessions. Before Ethereum tries to challenge its ATH at $4,380, it might retest the vital support zone, indicated by ETH/USD price chart. If the altcoin retest and confirms $3,600 as its support, market players can witness the alt surpassing $4,000 before this month ends. Meanwhile, breaking under the said level will cancel the optimistic narrative.
- Trading Volume
The past two days had the trading volume has plummeted due to the ugly movements due to weekend’s sessions. For that reason, market participants should be attentive to Monday’s price actions. That is due to the anticipated volatility following BTC’s ETF approval. Such a development will likely impact price movements by other cryptocurrencies.
- Relative Strength Index
The Relative Strength Index depicts bullishness on the daily price chart. However, the indicators appear to decline of the four-hour time frame. That can support the near-term retracement narrative, ETH hitting the support zone mentioned above.
- Moving Average Convergence Divergence
Similar to the Relative Strength Index, MACD turned bearish on the four-hour timeframe. That emphasizes the notion that Ethereum can test its support level before increasing further.
Ethereum bias remains highly bullish in the long term. However, the altcoin might retest its crucial support at $3,600 before trying to break its ATH zones. With that, market participants can witness ETH correcting. As declared above, the Monday market movement can tell Ethereum’s behavior during the coming week.
However, Ethereum bulls should overcome the resistance located at $4,025 to maintain their growth. Failure to that can see the alternative coin retesting the support level around $3,677. A quick bounce back might follow.
ETH/USD Near-Tern Price Forecast
For now, analysts anticipate Ethereum to continue consolidating inside the $3,600 – $3,900 price range before the alt can challenge its ATH. The token might necessitate a support retest for bulls to accumulate enough momentum to push Ethereum beyond $4,000.