The cryptocurrency market is catching its breath as Bitcoin’s rally stalls at the crucial $100,000 resistance level. This consolidation comes amid investor caution following the release of FOMC minutes, with lingering concerns over the potential for a December rate cut.
Meanwhile, Ethereum's price analysis reveals a slight pullback, possibly setting the stage for a renewed bullish surge toward the $4,800 mark.
Is Ethereum’s Recovery Losing Momentum?
- Ethereum has been navigating a correction phase under a persistent downsloping trendline since March 2024.
- Higher price rejection candles on the daily chart suggest significant overhead resistance at the $3,500 level.
The November rally saw Ethereum rebound impressively from $2,350 to $3,500—a 50.57% gain—fueled by Donald Trump’s U.S. election victory, Bitcoin’s new all-time high, and substantial ETH ETF inflows.
However, this bullish momentum faces a critical test. The $3,500 resistance, reinforced by the aforementioned trendline, has acted as a significant barrier since March. Historically, this level triggered a sharp reversal in late May 2024, where ETH plunged from $3,974 to $2,112.
Key Signals of Buyer Fatigue
The current stagnation at $3,500, marked by frequent higher price rejection candles, raises concerns about another bearish reversal. ETH’s market capitalization stands at $400.5 billion, with a robust 24-hour trading volume of $56.2 billion.
Source: Coinmarketcap
The Road Ahead for Ethereum
If Ethereum manages to break above the $3,500 resistance and invalidate the bearish trendline, it could reignite bullish momentum, setting a course for $4,800. However, failure to clear this level could result in another correction, possibly testing lower support zones.
Traders and investors should keep a close eye on key technical levels and macroeconomic events, as they will likely shape the trajectory of Ethereum’s price in the coming weeks.