FxNews—In today’s Ethereum technical analysis, we have analyzed the ETHUSD in the 4-hour chart. In recent developments, the ETHUSD pair exhibited remarkable performance, reaching a high of $2,280. This surge came after successfully breaking the $2,120 barrier on December 2.
The pair experienced some fluctuations, initially struggling with the middle band of the bullish flag pattern, but eventually managed to reach the upper band of the channel, indicating a strong upward momentum.
Ethereum Technical Analysis – Bulls Hit the Ceiling
A key observation is the current state of the Relative Strength Index (RSI). The RSI indicates that the ETHUSD pair is in a highly oversold condition. This is coupled with the formation of a doji-like candlestick pattern on the 4-hour chart. Such a pattern often suggests a potential trend reversal or the beginning of a consolidation phase in the market.
Despite these signs, the overall outlook for Ethereum’s price remains bullish. However, a period of consolidation might be on the horizon. We anticipate a potential decline to the 23.6% Fibonacci retracement level, which coincides with the median line of the bullish flag, thereby enhancing its significance as a support level.
The Bearish Scenario
It’s important to note that as long as the ETHUSD pair trades above the Ichimoku cloud, the main trend is considered bullish. This technical analysis suggests that while short-term fluctuations are expected, the longer-term trajectory for Ethereum appears to remain upward.