Ethereum News Today: Ethereum Consolidates Near Key $3,540 Fibonacci Resistance Amid Mixed Technical Signals

Ethereum’s price action on August 5, 2025, shows signs of consolidation near a critical Fibonacci confluence zone and mid-channel support. The cryptocurrency opened near $3,535 after briefly reaching a weekly high of $3,576 earlier in the day. Technical indicators suggest a mixed outlook, with indecision prevailing as the asset awaits a clear breakout direction.

On the weekly chart, Ethereum’s price is reacting to a long-term descending trendline resistance near $3,540, aligned with the 0.382 Fibonacci level from the 2021–2022 range. A clean rejection at this level, which overlaps with historical weekly resistance zones, has highlighted a structural barrier for buyers to overcome.

Daily chart analysis shows Ethereum hovering just above a strong support zone near $3,500, a level where previous demand triggered sharp rallies. This level also coincides with the top of a breakout wedge and the neckline of an inverse head and shoulders pattern, both of which suggest a continued bullish bias unless ETH breaks below $3,320.

The recent decline in price can be attributed to a failed attempt to breach key resistance and short-term overbought conditions. Ethereum pushed toward $3,576 but failed to close above the $3,540–$3,565 resistance band, prompting profit-taking. On the 4-hour chart, Bollinger Bands show ETH moving into the upper band during the failed rally, followed by a contraction and rejection. A bearish Supertrend flip at $3,639 and a declining directional movement index (DMI) further signal weakening bullish momentum.

Net inflows into exchanges have risen to $50.16M as of August 4, suggesting that some holders are positioning for short-term exits near resistance levels. These movements are typically associated with local peaks unless strong volume absorption supports further gains.

Momentum indicators on the 30-minute chart show Ethereum consolidating within a rising channel, marked by higher highs and higher lows since August 2. The RSI has cooled near 62, retreating from overbought territory. The MACD histogram has flattened, and the signal line crossover appears tentative, indicating potential momentum loss.

On the 4-hour chart, price has reclaimed the 20 and 50 EMAs at $3,542 and $3,566 respectively. However, candles remain under the red Supertrend flip zone at $3,639, signaling caution for aggressive long positions. The 100 EMA at $3,617 is the next immediate hurdle. A reclaim of this level would likely validate a fresh breakout push toward the $3,700–$3,750 region.

The short-term outlook (24H) for Ethereum remains range-bound unless a decisive catalyst emerges. If bulls manage to close above $3,565 with follow-through, the next resistance zones lie at $3,680 and $3,750. Clearing $3,750 would bring the psychological $4,000 mark into play. Conversely, failure to reclaim $3,565 could lead to a retest of the 200 EMA ($3,339) on the 4-hour chart and a potential dip toward the $3,250 Fib support zone.

Given the mixed technicals and heavy long positioning, traders are advised to monitor a Bollinger squeeze breakout and MACD confirmation for the next directional move [1].

Source: [1] Ethereum (ETH) Price Prediction for August 5 — https://coinedition.com/ethereum-eth-price-prediction-for-august-5-2025/