Ethereum Price Forecast: ETH Could Rally If the $2,635 Resistance Key Is Weakened

The Ethereum price has dwindled 2% today, with the ETH/USD trading at $2581. Despite the slight plunge, its 24-hour trading volume has soared 29% to $10.37 billion, signaling intense activity among traders and investors. 

As per Coinglass data, a 0.33% drop in the Open Interest (OI) to $10.66 billion may appear too small. On the other hand, the volume has jumped 23% to $16.86 billion, signalling a potential uptrend in the market. It can also be interpreted as a consolidation phase following a period of heightened volatility or a shift in investor sentiment.

Meanwhile, last week, digital asset investment products experienced inflows totaling US$30m. Ethereum saw only US$4.2m inflows, although this masked a flurry of activity, with new providers seeing US$104m inflows. On the other hand, Solana registered a significant outflow of US$39m, as it faced a sharp decline in trading volumes of memecoins, on which it heavily relies.

Ethereum Statistical Data

Based on CoinmarketCap data:

• ETH price now – $2,581
• ETH market cap – $310.56 billion
• ETH total supply – 120.29 million
• ETH circulating supply – 120.29 million 
• ETH ranking – #2

Ethereum Price Aims For a Breakout Above the Consolidation Phase

The Ethereum price trades with a bearish bias today within the confines of a rectangle pattern. The sellers have the upper hand as the price struggles to break above the immediate resistance at $2,635.The Ethereum price has been trading in a consolidation phase since August 8, within a sideways pattern, as the bulls faced resistance around the $2,752 resistance zone.

However, the bulls have established a strong support at $2,531, acting as a cushion against any further losses. Diving into the technical outlook, the ETH price trades below both the 50-day and 200-day Simple Moving Averages (SMAs). In this case, the bulls must first counter the immediate resistance levels of $2,635 and $2983 before embarking on an uptrend. 

On the other hand, the Relative Strength Index  (RSI) is hovering below the 50-mean level, suggesting bearish prospects. It currently sits at 42, as the altcoin is almost plunging to the oversold zone. Moreover, if the bears keep dominating the Ethereum market, the altcoin might plunge to the 30-undervalued region.

Notably, the Moving Average Convergence Divergence(MACD) worsens the outlook as it has flipped below the orange signal line. The momentum indicator has introduced a bearish outlook on the four-hour chart. A sell signal manifested when the blue MACD line flipped below the orange signal line, revealing that declines should be expected before the Ethereum price rebounds above the $2,635 zone.

ETH Price Prediction

According to the 4-hour chart analysis, the sellers have the upper hand in the ETH market. If the bears continue selling at this level, the ETH price could drop. Ethereum’s price holds support at $2,531, but its position below all three bull market indicators, including the 50-day and 200-day SMA, puts bulls at a significant disadvantage. 

Several attempts have been made to breach the $2,635 resistance, but sellers have always come out on top. In such a case, the breach and break below the $2,531 support level could cause the price to dwindle to 2,400 in the next 24 hours. However, if the bulls gain strength at this level, a breach and close above $2,635 will call for traders to commence booking positions in the market. This will see the ETH price surge as the bulls target the following resistance key at $2,983.