Ethereum
Crypto: Ethereum momentum continues to decline! Analysis of June 26, 2024
After peaking, Ethereum is under increasingly threatening selling pressure. Let’s take a look at the future prospects of ETH together.
Current Status of Ethereum (ETH)
After reaching a peak of $3,950 following the Ethereum Spot ETF ApprovalEthereum price has been under selling pressure which has naturally pushed the price of the cryptocurrency lower. This decline has been fueled by the fall in Bitcoin, which has dragged the entire cryptocurrency market down with it. Thus, Ethereum is in a short-term downtrend. Nevertheless, it seems to have attracted buying interest at $3,250, which has allowed it to remain above $3,300, a price level highlighted in the Analysis of June 12This gives hope for a potential rebound to counter this selling pressure.
Ethereum is now just below its 50-day moving average. This is not reassuring for the medium-to-long-term structure of the crypto. However, we can take comfort in the fact that it remains above its 200-day moving average. As for the Ethereum price dynamics, it is not surprising that it continues to fall, as evidenced by oscillators and the price of Ethereum itself. While this can be a timely signal in an uptrend, it can become concerning as this decline intensifies.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, he is an instructor at Family businessa community of thousands of active proprietary traders since 2017. You will find Lives, educational content and support around the financial markets in a professional and friendly environment.
A closer look at derivatives (ETH/USDT)
Open interest in Ethereum perpetual contracts appears to have followed the trajectory of the crypto price. This demonstrates an exit from speculators as the price of ETH falls. This phenomenon can be explained by a capitulation of buyers, subtly illustrated by the latest liquidations with a predominantly buyer-dominated nature. Coupled with a continued decline in funding rates, this demonstrates increasing selling pressure on ETH/USDT contracts. Of course, this is not convincing from the buyer’s point of view.
The three-month ETH/USDT liquidation heatmap reveals that the contact of the last two liquidation zones with the Ethereum price did not trigger sustained buying interest. Currently, the largest liquidation zones in recent months are above the current ETH price. In particular, the zone just below $3,700 and the one still visible around $3,900. Below the current price, the significant zone lies just below $3,100, extending up to $2,800, where it appears more pronounced. A price approaching these levels could trigger massive order executions, increasing the risk of increased volatility for Ethereum. These areas therefore represent critical points of interest for investors.
Ethereum (ETH) Price Hypotheses
- If Ethereum price sustains above $3,250, we could expect a bullish recovery to $3,500 or even $3,800. The next resistance to consider would then be $4,000 to $4,100. If the bullish move continues, this could mark a new high at $4,500, paving the way to reach Ethereum’s ATH. At this point, that would represent an increase of more than 32%.
- If Ethereum price fails to hold above $3,250, we could be looking at a return to around $3,000. The next support to consider, if the bearish move continues, would be in the price range between $2,900 and $2,800. Further down, we can note the support at $2,700. At this point, this would represent a decline of around 20%.
Conclusion
Ethereum is currently experiencing a decline influenced by the crypto market crash. Despite this selling pressure, key support has maintained a certain price level, giving hope for a potential rebound. However, the situation remains uncertain, with the persistence of bearish momentum in ETH, which could become worrying if this trend continues. It will therefore be crucial to closely observe the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant for possible market “falsification” and “squeezes” in each scenario. Finally, remember that these analyzes are based solely on technical criteria and that the prices of cryptocurrencies can also change quickly depending on other more fundamental factors.
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Family Trading is a community of self-employed traders active since 2017 offering Lives, educational content and mutual assistance around the financial markets including cryptocurrencies with Elie FT at its side, investor and passionate trader on the crypto market.
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