Ethereum (ETH) is currently struggling below a significant resistance level at $3,659, causing concerns among traders that its bullish momentum may be losing steam. After experiencing steady gains in recent weeks, the cryptocurrency has entered a consolidation phase, leaving many to wonder whether ETH’s rally is losing momentum or if it’s simply pausing before making its next move.

This article delves into Ethereum’s current market conditions, analyzing the consolidation below the $3,659 resistance level and the implications of key technical indicators and support zones that could shape its next move.

Ethereum’s Struggles Below $3,659 Resistance

ETH’s price action has been largely constrained by the $3,659 resistance, with bulls facing difficulty in pushing the price higher. This resistance has caused Ethereum to enter a consolidation phase, which could be indicative of a momentary pause in the rally. However, the failure to break through this level could signal that the market is losing confidence in Ethereum’s immediate upward potential.

As the price lingers below this resistance level, questions arise: Is Ethereum’s bullish momentum fading, or is it simply a temporary consolidation before another surge?

Key Indicators Signal Fading Bullish Momentum

Ethereum’s price action and technical indicators reveal growing bearish momentum. On the 4-hour chart, ETH is attempting to drop toward the $3,360 level, which is aligned with the 100-day Simple Moving Average (SMA). This key support could determine the direction of the next move. If Ethereum manages to hold above the $3,360 support, a rebound may follow. However, if this level fails to hold, it could trigger more downside pressure, possibly testing lower support zones.

Relative Strength Index (RSI) Shows Weakening Momentum

The Relative Strength Index (RSI) on the 4-hour chart has fallen to 56%, down from the overbought region. This decrease signals a reduction in buying pressure and hints at a potential shift in market sentiment. A continued decline in the RSI suggests that Ethereum may be entering a consolidation or even a reversal phase, as buyers lose control. If the RSI drops further, it would confirm increasing selling pressure, which could lead to deeper corrections in the near term.

Bearish Signs Despite Support at 100-Day SMA

Despite the 100-day SMA offering some support for Ethereum’s price on the daily chart, the ongoing decline toward the $3,360 level raises concerns. Although the 100-day SMA typically acts as a strong support level, Ethereum’s failure to reclaim higher price levels suggests that the selling pressure is dominant, and the bullish momentum is weakening. A break below $3,360 could expose ETH to a deeper market pullback, with the next support seen at $3,200.

RSI on the 1-Day Chart Signals Bearish Pressure

Looking at the 1-day RSI, Ethereum is showing increasing negative pressure. The signal line has dropped back to 65% and is now aiming toward the 50% threshold. A move toward this neutral zone would indicate growing selling dominance, suggesting that the price could continue to face downward pressure unless buying activity resumes.

As Ethereum’s RSI continues to slide, it reinforces the bearish trend and signals that the market may be preparing for further declines unless a catalyst emerges to turn the sentiment around.

Potential Scenarios for Ethereum’s Price Action

1. Rebound from $3,360: If Ethereum manages to hold above the $3,360 support and the 100-day SMA, the price could stabilize and prepare for another attempt to break through the $3,659 resistance level. In this scenario, a bullish reversal could drive ETH back toward its previous highs.
2. Break Below $3,360: A failure to hold the $3,360 support would likely trigger further downside movement, potentially pushing Ethereum toward $3,200 or lower. This scenario would confirm a bearish trend, with the likelihood of a deeper pullback.
3. Renewed Bullish Momentum: Should the buying pressure return, Ethereum could push through the $3,659 resistance, leading to a potential surge back toward previous highs. However, this would require strong bullish momentum to overcome the current selling pressure.

Conclusion: Is Ethereum Losing Its Bullish Edge?

Ethereum is at a crucial juncture, as it faces resistance at $3,659 and the market shows signs of waning momentum. Key technical indicators like the RSI and the 100-day SMA suggest that bearish pressure is building, with the possibility of further declines if critical support levels fail to hold.

Traders should watch closely for a decisive move at $3,360. A rebound could signal a continuation of the bullish trend, while a break below this support would reinforce the bearish outlook. Until Ethereum decisively breaks past its resistance or holds its support, its price action remains uncertain, with the market watching for the next major move.