It appears that the traditional cryptos like Bitcoin and Ethereum have inculcated a silent trend and hence target the lower levels instead of surging high. Bitcoin price also is trending around $46K from quiet a long time, showing no signs of a breakout in the near future.
Much similar to BTC, Ethereum price is also wandering within a very narrow range since the Christmas slash and unable to recover beyond $4000 levels.
The narrow trend of the ETH price appears to be mainly due to the bears, not allowing the asset to jump out of consolidation. A specific pattern is witnessed with the ETH price chart which clearly supports the above argument.
And hence if the buyers or the bulls do not jump in action immediately, then the asset could easily revisit the lower levels at $3000 in very small time frame.
- The chart clearly indicates that the bears are fully in control and not allowing the buyers to uplift the price above the consolidation
- Each time the asset accumulates three notable green candles in the 4-hr chart, the bears quickly jump in to extract the profit and further allow it to rally for some time. Here the price comes down to its initial levels back again
- The same pattern of 3 consecutive buying periods in a row followed by notable selling is not good for a healthy rally
- On the other hand, the price just got rejected from one of the important resistance levels along the 200-day DEMA, which is nothing but Double EMA that runs closely with the price
- Interestingly, MACD is showcasing a bullish sign by being above the signal line since 31st of December, yet it has not impact with the price which is pretty worrisome
- Lastly, the buying volume on the platform is less compared to that of the selling volume and hence the price may continue to consolidate further