- Ethereum’s price has been correcting over the past few weeks after setting a local high around the $4,000 mark.
- Technical analysis on the daily chart shows the price consolidating between $3,000 and $3,600, with the potential to drop towards $2,400 if it breaks below $3,000 support.
- The 4-hour chart reveals a bearish market structure with lower highs and lows, suggesting an imminent drop towards $3,000 if the price breaks below $3,200.
Ethereum‘s price has been correcting over the past few weeks after setting a local high around the $4,000 mark. While the price has yet to recover, the bull market may be far from over.
The Daily Chart
On the daily timeframe, the price has been consolidating between $3,000 and $3,600. Following the recent rejection from $3,600, the market is once again targeting the support at $3,000.
The Relative Strength Index has also dropped below 50 as the momentum has seemingly shifted bearish. A break below $3,000 would lead to a potential crash toward the 200-day moving average around the $2,400 mark.
On the contrary, a rebound from the $3,000 zone could push the price back toward $3,600 and likely higher this time around.
The 4-Hour Chart
Looking at the 4-hour chart, the recent price action seems very choppy. The price has tested the $3,600 resistance zone several times but has failed to continue higher toward $4,000.
The market structure is clearly bearish in the short term as the price has been making lower highs and lows consistently. Therefore, a drop back toward the $3,000 zone will be imminent if the price breaks below $3,200.
Conclusion
Ethereum‘s price is facing downside pressure in the short term and may retest support around $3,000. However, the long-term bull market likely remains intact. A decisive break above $3,600 could signal the resumption of the uptrend toward new highs. Technical indicators suggest caution is warranted until a clearer trend emerges.
