- Ethereum price shows that after reaching the all-time high of $ 3454, a correction may begin.
- An MRI predicts a peak cycle signal, assuming a reversal is imminent.
- ETH could drop to $ 2,853 as it initiates a consolidation phase.
Ethereum’s price has surged over the past week, leading to a new all-time high. However, ETH could be followed by consolidation as traders take a break.
Ethereum price slows down
Ethereum’s price has dropped nearly 7.85% on the daily chart, but stands at $ 3,350 at the time of writing. However, this correction could extend further as the Momentum Reversal Indicator (MRI) issued a reversal signal in the form of a red one candle.
This setup calls for one to four candlestick corrections up to $ 2951 opening on Monday. Sellers may even try to drop to the $ 2,853 level, which is 15% below current price levels.
Since December 2020, the last four out of five cases of this indicator have blinked a cycle high signal, the price of ETH has fallen by an average of 15%, which corresponds to $ 2951. Thus, investors should closely monitor the fall of the smart contract token by 15%.
Once swing lows are set, Ethereum’s price is likely to consolidate in that range until buyers overcome selling pressure by breaking current all-time highs to create a new one.
Under these conditions, market participants can see ETH rise 127.2% to the Fibonacci extension level of $ 4,964.
1-day chart ETH / USD
While this consolidation scenario looks likely, Ethereum’s price could turn bearish if the 78.6% Fibonacci retracement level of $ 2,597 is broken. The move will nullify a beach-related thesis that could provide ETH with a platform for its next move, and will trigger a 9% correction to $ 2,359.