Ethereum price appears to be showing more bearish signs throughout the noticeable short-term consolidation phase that has taken place over the last few weeks. The overall trend still remains bullish but for how long? Bulls seem to be sitting on the sidelines for now.
ETH/BTC 4 Hour Analysis
On the 4-Hour chart for the ETH/BTC pair, we can see the consolidation phase taking place between 0.0208 – 0.0223 sats. Market price action is currently just below Range High highlighted on my chart. POC (Point of Control) remains closer to the Range Low thus making it highly likely a drop back to the Range Low will occur over the coming days.
Bullish Momentum on the Maxx Momentum indicator seems to be fizzling out as price action creates a sharp uptrend. Low volume remains, making it unlikely any form of upwards movement will take place in the short-term unless an influx of new buying pressure takes place.
It’s difficult to gauge whether the Range Low support will hold, or if ETH will make a lower low. One thing that will be an important factor in deciding will be whether volume likes spike back up or not as they’re almost half the volume level in which took place just 1-2 weeks ago let alone the prior bullish up-trend, more analysis on this topic can be found here.
ETH/USD 4 Hour Analysis
On the 4 Hour chart for ETH/USD, we can see a similar phase of consolidation taking place after the most recent sell-off. Price action has formed what appears to be a bearish pennant in the form of an asymmetrical triangle. Volume is also very much descending which is something to look out for when gauging if a pattern is bearish or not. Despite this, POC remains over $100 above the current market price.
The 50 MA has caught up to the current market price confirming a period of consolidation is taking place. It’s important to keep an eye on BTC/USD’s price action as both ethereum and bitcoin typically move together in close succession. You can find up to date analysis on BTC here.
Overall, the consensus for all short-term, medium-term, and long-term very much remains bullish for ethereum price. The recent insane growth seen on both BTC and ETH had to cool off sooner rather than later to be able to sustain any form of reversal from the previous drop both all-time highs.
Do you think ethereum price will drop below $165 again? Please leave your thoughts in the comments below!
Images via Shutterstock, ETH/BTC charts by Tradingview
