Ethereum has been struggling with the 100-day moving average, which sits at $1,772, for an extended period. However, the price action at this crucial level has yet to clearly indicate any future direction. A breakout, on the other hand, has the potential to trigger an immediate cascade.
Technical analysis
By Shayan
the daily chart
After a short-term consolidation phase, the price declined towards the 100-day moving average of $1.7K. The recent PA for Ethereum has failed to give any definitive direction, with the price consolidating and printing very small green and red candles. This has left the market in extreme uncertainty.
Nonetheless, the cryptocurrency is facing two critical support levels: the 100-day moving average at $1,772 and the substantial support region at $1.7K. Therefore, if $1,700 prevents a further decline, there is a chance of a rally targeting the $2,100 resistance area.
The 4 hour chart
On the 4-hour time frame, the price has continued its downtrend towards the support region at $1.7K. However, after reaching this level, it formed a slight bounce and entered a consolidation state characterized by very small candlesticks.
Meanwhile, a falling wedge pattern can be seen on the 4-hour time frame, with price currently consolidating within the tight range. The lower trend line of the wedge coincides with the important support region of $1,700, making it a powerful level.
Ultimately, a break below the support zone at $1.7K and the lower bound of the falling wedge could trigger a cascade as longs are liquidated and selling pressure builds. Conversely, if the price finds support, it could potentially target the mid-boundary of the channel and even the resistance region at $2.1K.
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