Ethereum, the world’s second-largest cryptocurrency, has experienced a period of consolidation after a recent rally. The price of Ethereum surged to a four-month high following Trump’s win, but it failed to close above the 3,500 level, remaining below its March 2024 high. Profit-taking by investors has caused Ethereum to dip towards the 3,114 area, although the short-term trend remains bullish.
Momentum indicators suggest that a bearish turn could be on the horizon. The RSI is showing signs of weakening bullish pressure, while the stochastic oscillator has dropped below its overbought area and moving average. If the stochastic oscillator continues to decline, it could indicate a strong bearish signal.
Bulls in the market are aiming to keep Ethereum above the 38.2% Fibonacci retracement level at 3,115 and push it towards the 3,490 level. Success in surpassing the April 2022 high at 3,582 could pave the way for a move towards the 4,000 area. Conversely, bears will look to push Ethereum below 3,115 as a first step towards a potential downward trend, testing the 200-day simple moving average at 2,953.
In conclusion, Ethereum’s rally has paused for now, with the cryptocurrency trading above a key support level. Investors are closely monitoring the market indicators to anticipate the next potential direction of Ethereum’s price movement.
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