Ethereum (ETH) Faces Consolidation After Reaching $3.4K

• Ethereum remains consolidated within the $3.1K range.
• ETH’s surge is crucial to bolster the altcoin rally.

The altcoin market saw remarkable growth this month, with SOL, XRP, ADA, PEPE, and FLOKI surging in double-digit returns. Consequently, the anticipation of the altcoin season mounts. ETH’s surge might be the missing piece to solidify the altcoin market rally.

The largest altcoin, Ethereum (ETH) has stalled behind other major assets and failed to secure expected gains. After visiting a high of $3.4K on 12 November, ETH price failed to continue its upside trajectory and started a downside correction.

Ethereum managed to find its strong support at $3K levels and lost over 0.13% over the past 24 hours. However, due to its bearish pressure, ETH is poised to trade on the downside. At press time, ETH trades at $3,106.

The asset has visited its lowest price of $3,052 and climbed to a peak of $3,225. Notably, the market has observed a liquidation of $49.53 million worth of Ethereum and the daily trading volume of ETH stays at 36.63 billion.

As per a recent analysis, Ethereum’s strong support is around $3K, where 2.82 million addresses hold over 6 million ETH. This demand zone is seen as key for the asset to potentially rally toward new highs, with buying interest likely to increase if the price stays above this level.

On the other hand, ETH’s price has cycled between bands, at a high of 10 and bottoming at 2 in the first cycle, then topping at 7 and bottoming at 4 in the second. Additionally, it could reach $9.2K at band 6 by mid-2025, and possibly $17.6K at band 7.

Is ETH Poised for Another Decline?

The ETH/USDT trading pair exposed the bearish sentiment as the Moving Average Convergence Divergence (MACD) line and the signal line is found below the zero line. This also signals the incoming negative trend in the market, as the bullish pressure diminishes.

ETH chart (Source: TradingView)

In addition, the Chaikin Money Flow (CMF) indicator is found at -0.05, suggesting the negative money flow within the market. Meanwhile, Ethereum’s daily trading volume has climbed by over 45.30%.

The four-hour price chart of ETH displays the asset’s struggle to break the crucial threshold. For ETH, entering into the bullish territory is the only catalyst for further gains. If the positive trend hits, the asset could push the price to the potential $3.3K mark. ETH could climb higher if it tests the key resistance at $3,417.

Looking at the downside, if Ethereum faces resistance in its upward trajectory, a downside correction might appear and ETH may likely test the support around the $2.9K level. The failure to hold this range could drive an intense correction toward $2,847. ETH’s pivotal moves will decide if it holds its recovery or slips into deeper consolidation.

Ethereum’s daily frame exposes the short-term 50-day moving average above the long-term 200-day moving average. Moreover, the current market sentiment of ETH is in the neutral zone, as the daily relative strength index (RSI) is settled at 49.52.

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