ETH consolidates below $ 5,000 as weakness emerges

• Key Support: $ 4,354
• Key Resistance: $ 5,000

The momentum behind ETH is still very strong, which has driven the price higher and higher. Everyone expects ETH to move towards $ 5,000, which is only 4% above its current all-time high. This would be an easy target for ETH given the price movements.

However, there are some warning signs that the bears may reverse soon, especially as ETH is getting closer to an important level of resistance.

The formation of a bearish divergence between the MACD and RSI seems to suggest that the bears may step in and initiate a deeper correction once ETH hits $ 5,000, which could push ETH into strong support at $ 4,354.

ETH / USDT daily chart | Source: TradingView

Technical indicators

Volume: The volume is maintained throughout the entire bull run. This is a sign that higher levels are still attracting buyers.

RSI: In the daily timeframe, the RSI remains below the 70 mark despite multiple attempts at it. The bulls have to make a decisive move or the RSI will make a lower high. This is a bearish divergence that usually precedes a correction.

MACD: The MACD histogram in the daily timeframe is in positive territory but making lower highs. This is a sign of weakness.

ETH / USDT daily chart | Source: TradingView

Perspectives

Ethereum’s trend is still bullish. Traders should be careful, however, as a strong rejection of the resistance level could send ETH into a short-term shock. The cops need to put more confidence in the market. Otherwise, the bears could benefit from signs of weakness.

Short term price forecast

ETH is on its way to psychological resistance at $ 5,000. However, the wedge pattern together with the bearish divergence of the indicators can be interpreted as an early warning that a correction is imminent. Strong support to look out for is at $ 4,354.

You can see the ETH price Here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Cryptopotato

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