Ethereum (ETH) Shows Signs of Consolidation After Recent Pullback From the $1,650 Resistance Level

Ethereum, the second-largest cryptocurrency by market capitalization, is showing signs of consolidation after a recent pullback from the $1,650 resistance level.

Ethereum (ETH) is showing signs of consolidation after pulling back from the $1,650 resistance level, attempting to break above the $1,650 zone but failing to maintain momentum.

This led to a correction, and ETH is now trading below $1,600 and the 100-hourly Simple Moving Average.

On the hourly chart, ETH broke below a short-term contracting triangle with support at $1,595. The price tested the $1,565 zone, forming a low at $1,564 before starting to consolidate.

On the upside, Ethereum faces resistance near the $1,600 level. The next key resistance sits at $1,610, which corresponds to the 50% Fibonacci retracement level of the recent downward move from $1,655 to $1,564.

If Ethereum can clear these levels, the major resistance at $1,620 comes into play. A successful break above $1,620 could send the price toward the $1,650 resistance.

Several crypto analysts remain bullish on Ethereum’s price trajectory, with some setting higher targets for the digital asset.

Analyst Incognito predicts that Ethereum could rally to as high as $2,700 as the Wyckoff accumulation pattern nears completion. According to his analysis, if support holds, ETH should see a breakout of the falling wedge pattern with an initial target of $2,499 before potentially reaching $2,700.

However, Incognito cautions that this could be a trap to shake out sellers, advising traders to consider taking profits if these levels are reached.

Another analyst, Ali Martinez, notes that the TD Sequential indicator has flashed a buy signal for Ethereum on the four-hourly chart, hinting at a potential shift in momentum. For a new bull rally to materialize, Martinez suggests that ETH needs to break through the supply wall at $2,330, where 12.62 million addresses purchased 68.63 million ETH.

Looking at the bigger picture, some analysts believe Ethereum may have already bottomed out or is in the process of doing so.

Titan of Crypto suggests that Ethereum is progressing within a giant ascending channel on the macro chart. His analysis points to a potential rally that could take ETH as high as $4,200 following a bullish reversal.

Similarly, analyst Hardy indicates that Ethereum’s weekly candle close was bullish and could signal a potential reversal at key support levels. His chart analysis shows Ethereum potentially rallying to $4,300 on this bullish reversal.

Even more optimistic is Crypto Patel, who predicts that ETH could reach between $6,000 and $8,000 by the end of the year. Reclaiming the $4,000 level could pave the way for Ethereum to reach a new all-time high.

On the downside, if Ethereum fails to clear the $1,620 resistance, it could face renewed selling pressure. Initial support sits near the $1,565 level, with the first major support at $1,550.

A drop below $1,550 might push the price toward $1,500. Further losses could see ETH test the $1,450 support level, with the next key support at $1,420.

The correlation between Ethereum and Bitcoin remains strong. If Bitcoin sustains its current bullish momentum toward the $90,000 level, Ethereum is likely to follow suit and potentially reach new local highs.

Overall, Ethereum’s price action in the coming days will largely depend on its ability to overcome immediate resistance levels and the overall market sentiment in the cryptocurrency space.

For now, the cryptocurrency appears to be in a period of consolidation, gathering strength for its next major move.