The Ethereum price seems to be heading towards the end of the prevailing consolidation as the token is approaching the interim resistance at $3500. Meanwhile, the second-largest token witnessed a massive outflow of ETFs during the last trading day worth over $77 million, which could have dragged the levels slightly lower. Besides, the ETH price seems to have reached the edge of the consolidation as a bullish breakout is expected to occur in the short term, which may elevate the levels to $4000 soon.
In the past few days, the ETH price has established a local low range that aims for an interim target of $3500. Meanwhile, the token may certainly not revive a strong upswing before reaching these levels, as it has become a strong threshold in the STF. Besides, the long-term price action suggests a new ATH could be far off as the token could continue to remain consolidated below $4000 for a few more months.
The weekly chart of Ethereum prices suggests the token is stuck within an ascending triangle in the long term and the latest pullback from the $4000 resistance validates the claim. However, the bulls successfully prevented excess price drain below $3,200 and quickly pushed the price above $3350 to $3400. Besides, the RSI remains incremental while the MACD shows a drop in the buying pressure. With a bearish crossover, the trade may eventually turn bearish, dragging the levels slightly lower.
Meanwhile, the volume has dropped heavily and seems to have squeezed heavily, suggesting a significant explosion could be nearby. With this, the possibility of a rebound remains high, which may push the price back to $4000. However, the volume has remained grounded for over a couple of years; hence, to beach above the resistance, a huge influx of buying volume is required. This could be when the ETH price may surge high and form a new ATH, probably above $5000.
With the beginning of the fresh yearly trade, the market participants are expected to witness a race between Bitcoin and Ethereum. Both the tokens are expected to perform well in the coming days, while there is the possibility of ETH outperforming the top token. If this happens, the Bitcoin dominance is expected to topple over, paving the way for the altcoin market to swell. Therefore, the Ethereum price is believed to manifest a significant bullish action and test higher targets in the upcoming days.
