- 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/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.