Ethereum
ETH surpasses $3,000, but will the sellers return? (Ethereum Price Analysis)
Ethereum price has struggled to breach the critical $3,000 support zone, with a recent bullish rebound driven by increased demand near this level.
However, a significant resistance zone is looming, which could put an end to the current momentum.
By Shayan
The daily chart
An analysis of the daily chart shows that Ethereum sellers attempted to push the price below the crucial $3,000 support region, which aligns with the 0.5 Fibonacci levels ($3,133) and 0.618 ($2,906).
Despite these efforts, ETH recently saw a bullish rebound due to significant demand around this key threshold, reaching the upper boundary of a multi-month descending wedge and the crucial 100-day moving average at 3.2 000 $.
A sudden break of this critical resistance zone could trigger a surge, with the next target being the $3.4k resistance region. However, the $3.2K resistance region has the potential to halt the bullish momentum as it includes a notable amount of supply. If a bearish rejection occurs, a fall towards the lower boundary of the wedge becomes imminent.
The 4-hour chart
A closer look at the 4-hour chart reveals a multi-week range-limited phase, with Ethereum consolidating between important support at $2.9K and critical resistance at $3.2K. Recently, the price saw a notable rise near the $2.9K threshold, moving back towards the upper boundary of the wedge, which corresponds to the $3.2K resistance region.
This indicates a slight increase in market demand.
If buyers successfully breach the wedge’s upper trendline at the $3.2k resistance level and the bullish momentum builds, a strong uptrend could emerge in the medium term. However, if buyers fail to push the price above this threshold, a reversal could occur, leading to the continuation of the current sideways range phase towards the $2.9k support.
By Shayan
Amid Ethereum’s recent sideways consolidation and uncertain price action, investors are closely monitoring futures market behavior to gauge potential changes in sentiment. The attached chart displays the Ethereum Open Interest metric, which measures the number of open perpetual futures contracts on various cryptocurrency exchanges.
Higher values suggest potential market volatility and trend sustainability, while lower values indicate a cooling of perpetual markets.
The chart shows a significant increase in open interest after a short period of sideways consolidation, highlighting increased activity in the futures market and more aggressive long or short positions. Depending on the direction of these positions, this suggests a potential notable price change in the near term. If financing rates also increase, the market could see further upward trends in the medium term. However, increased volatility can accompany this activity, so traders should exercise caution.
SPECIAL OFFER (Sponsored)
Free Binance $600 (CryptoPotato Exclusive): Use this link to create a new account and receive an exclusive $600 welcome offer on Binance (all the details).
LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 Welcome Reward, use this link to register and open a position of 100 USDT-M for free!
Disclaimer: Information found on CryptoPotato is that of the cited authors. It does not represent the opinions of CryptoPotato on whether to buy, sell or hold any investments. You are advised to carry out your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.
Cryptocurrency Charts by TradingView.