Ethereum made the most of the mid-week crypto escalation by recording a 9% hike between 11-13 January. However, its price action has quieted over the last 48 hours after failing to test the waters above $3,400. The 4-hour RSI and MACD shifted south and their current readings were nothing spectacular.
Ethereum 4-hour Chart
Ethereum’s down-channel breakout and a broader market rally were in perfect cohesion as the world’s largest altcoin snapped a five-day high around the 50% Fibonacci level ($3,380) on 13 January. A round of profit-taking even allowed ETH to cement ground around $3,200 and redirect its effort back to $3,400. However, at press time, the market was evenly contested between buyers and sellers.
Short-bodied candlesticks on the 4-hour chart showed indecision amongst ETH investors and a breakout above the 50% Fibonacci level looked uncertain.
Bullish-neutral readings on the MACD and RSI also identified that buyers lacked the numbers to press on higher. Hence, Ethereum could move sideways over the next few days until a clear trend emerges. The channel between $3,400 and $3,200 would be crucial during this stage and a breakout in either direction would see the enforcing side take near-term control of the market.
Indicators
Ethereum’s Bollinger Bands were converging and a period of low volatility was expected to follow. The upper and lower band even coincided with the channel mentioned earlier. A move above or below these bands would generate a larger price swing.
On the downside, the 4-hour Awesome Oscillator would be at risk of a bearish twin peak if ETH fails to close above $3,400. If sellers capitalize on this red flag, ETH could even form a fresh low between $3,140-$3,060 support.
Conclusion
Ethereum could take a back seat during the weekend and pave way for its smaller counterparts. Its price was expected to oscillate between $3,400-$3,200 until the market players develop more clarity.