Ethereum (ETH) – Entering a consolidation phase

Ethereum (ETH) – Entering a consolidation phase

Posted on Wednesday, October 27 2021 at 9:17 pm GMT+0000

Ethereum (ETH) – Short-term analysis

Ethereum (ETH) has entered a consolidation phase where the critical handle of around $3,900 supports the current price action. Overall, according to the H4 chart, the picture remains bullish, and while the cycle keeps pointing upwards due to the structure developed from the lows of September, the resistance area formed by the TD Sequential indicator at around $4,200 caps further gains in the world’s second-largest crypto by market cap.

However, the same indicator flashes a bearish signal that could be a short-lived one that eventually could push the price lower towards the $3,800 handle in a first degree, putting it a risk to fall further if it gives up it would invalidate the sequence of higher lows.

In the bullish scenario, ETH should break above $4,200 to resume the bullish bias and refresh its all-time highs, targeting the key resistance area of $5,000, bolstering the price action, and putting the cryptocurrency in a quite bullish outlook for the next year.

In the meantime, the RSI indicator favors the short-term bearish scenario, as it hovers within the negative territory.