• Ethereum price is hovering just above an ascending trend line. 
  • A slight bearish divergence in the Relative Strength Index backs up the negative perspective.
  • An invalidation for the bearish model will be a break above $3,481.

Ethereum price has bears preparing to feast as the Smart Contract Token could retest multiple support zones below.

Ethereum price looks dicey

Ethereum price has rallied 20% since last week’s successful trade setup. ETH price is currently confined within a daily trend channel as the price consolidates at $3,290.The bears will likely attempt to send the ETH price back into the breached weekly trend line, currently around $3,000. The 50-day moving average and a previous weekly swing high also line up in the vicinity of the trend line, which should give more confidence for a bearish target. 

Ethereum price showing some hidden bearish divergence on the Relative Strength Index

The new daily pivot high at $3,481 is slightly more oversold than the November 24 swing high at $4,600. The divergence could be early evidence of a catalyst to lower ETH prices.

eth/3/31

ETH/USDT 2-Day Chart

Still, nothing is ever set in stone when it comes to Cryptocurrencies. The bulls can still maintain strength, but they must breach the current swing high at $3,481. If this were to occur, the ETH price could continue charging higher towards $3,700 and potentially $4,000, up to 22% above the current Ethereum price.

 

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