Key assistance levels: $ 3,600, $ 3,300
Key resistance levels: $ 3,800, $ 4,000
ETH moved sideways to the descending wedge (marked in blue on the following chart). Price is now approaching the upper border of the corner which is currently acting as resistance around the $ 3,800 level. If ETH is gaining momentum here, then the bulls have a chance to break through. Failure will bring the price back to support to $ 3,600 or even $ 3,300 if the correction continues.
Technical Indicators
Trading Volume: There is nothing impressive on the volume side right now. However, ETH appears to be preparing for a move.
RSI: Daily RSI rallies, indicating that momentum on the buyer’s side is picking up. As long as this continues, price may attempt a breakout of key resistance.
MACD: The daily MACD is a day away from doing a bullish cross. This is exactly what ETH needs to be able to break above the falling wedge, should momentum pick up. The bullish divergence on the MACD histogram was also an early sign that this could take place. This week may be decisive for that.
Bias
The bias for ETH is neutral. A break above the descending wedge would make the chart bullish.
Short-Term Price Prediction for ETH
ETH appears to be preparing a possible rally and an escape from the current formation. If successful, it could trigger a nice rally to $4,000 which has been a challenging resistance in the past.
Volume is still shy, but price will have to decide the next path to take very soon and possibly before the end of this week. We must therefore expect volatility.
