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Is It Preparing for a Move Above $4100?

Ethereum had broken the resistance of the consolidation pattern amid news related to the approval of the spot ETH ETF. The reaction of the ETH price along with the entire crypto space was extremely premature, as the markets began to consolidate. Many believed that the news may lift the price above $4000, but before marking these levels, the bears intensified their activities. As the reaction of the approval was already embedded in the reaction, the markets did not have the potential to go up further as there was strong resistance ahead. 

Further, the ETH price continued to consolidate and go up. Interestingly, in all the time frames, the ETH price has set a bullish narrative, indicating that the buyers are accumulating strength to trigger a next move aiming to break $3900. However, the ETH price began to consolidate within a range and after trading below the barrier at $3817 for a couple of days, the token finally broke above the range. 

Now that the price has risen above the interim resistance, followed by an accumulation, will the ETH price clear the pivotal one at $4000?

The ETH price was trying hard to surpass $3800 while the bulls were fighting in the $3730 to $3750 range. Nevertheless, with a minimum volume, the ETH price rose above $3800 but this upswing may not persist for long as the technicals suggest a reverse action. The MACD is about to turn bearish as the levels are about to undergo a bearish crossover. This may cause the levels to drop to the interim support zone between $3662 and $3713. However, the ADX is rising, suggesting a rise in the strength of the rally, besides, the RSI is sticking along the upper threshold, indicating the rise may prevail. 

Considering all the technicals, it suggests that the Ethereum price may face a minor pullback to the lower range, which may attract fresh liquidity. If the volume continues to remain within the same range, the ETH price may continue to rise slightly above $3900 and reach around $3915 to $3920 but may remain constant until the next bullish push. However, the current market dynamics do not point towards a massive change and hence the ongoing compression is believed to continue for a few more days.

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