Ethereum (ETH) had recently dropped below an ascending wedge formation, as shown in blue on the following chart, and since then lost its short-term bullish momentum. ETH is now facing crucial support level as described below.
Key Support levels: $4,354, $4K
Key Resistance levels: $4,689; $5,075
Over the past week, amid a new ATH for ETH, the bulls were unable to push the coin above the coveted $5,000 mark. The current ATH lies at $4,878 (recorded on Wednesday). Since then, the price is trading sideways and appears to consolidate just above the support at $4,354. The bullish case is that ETH will retest this support before being able to resume its multi-month uptrend.
This loss of momentum is not very concerning so long ETH does not drop below the key support and can be interpreted as a healthy break in the uptrend.
Trading Volume: Decreasing volume on this pullback. This shows the bears have no conviction to push ETH price lower as of now.
RSI: The RSI is decreasing and