When the dominant crypto bitcoin price broke the $ 50,000 mark, 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 few rejections at $ 3,340, ETH prices forced it to hover around $ 3,000.
Despite some notable resistance, the indicators point to a significant bearish divergence tracking the rally. Price held the uptrend tight a month ago and the current pullback is testing the trend. As sales intensify, the opportunity to break the trendline could come to the surface.
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The indicators were pretty bullish as the market turned in favor of the bulls. But with accumulation, the trend shows a downward divergence. The RSI is slowly falling as the MACD is showing large sales. The bulls’ passivity remains worrying, however, as only mounting pressure to buy could break the consolidation.
Undoubtedly, Ethereum price is still confident about hitting the highs and continuing to rebound towards the milestone at $ 5000. The need of the hour, however, is to prevent the ETH price from visiting the support zone. A slide out of this zone could allow price to hit lower lows, while a notable rebound could require enormous efforts.
Also read: Analyst sets next target values for Cosmos (ATOM), Avalanche (AVAX), Elrond (EGLD) & SushiSwap (SUSHI)