Ethereum
Ethereum Bullish Surge Calms Down – How Much Longer for $4,000?
- Ethereum is showing signs of consolidation amid ETF hype, indicating the lack of strong market direction.
- General sentiment and technical indicators suggest that the consolidation phase has already begun.
After reaching the peak of the spot ETF hype, Ethereum [ETH] the rally seems to be slowing down by the minute. What was a 17% increase last week became less than 1% this week. Is the second largest cryptocurrency in the world at risk of consolidation?
Let’s take a look.
Ethereum derivatives data presents mixed sentiment, potentially indicating a slowdown in Ethereum’s rally. The increase in trading volume by 10.32% and open interest by 1.19% shows that traders are still very active with ETH.
Source: Coinglass
Looking at the long/short ratios, we see a predominance of long positions over short positions, indicating that despite the slowdown, many traders are still betting on Ethereum to rise as ETFs prepare to start trading the next week.
Source: Coinglass
Ether’s current liquidation pattern could indicate that despite the prevailing bullish sentiment, ETH is facing increased market caution. This usually precedes short-term consolidation, as Bitcoin showed after hitting all-time highs earlier this year.
The ETH/USDt chart shows even more incoming consolidation. After peaking around $3,980, Ethereum faced resistance and has since formed a consolidation pattern, generally fluctuating between $3,770 and $3,900.
Source: TradingView
The relative strength index (RSI) currently reads 51.43, indicating neutral momentum that aligns with the ongoing price consolidation.
This suggests neither overbought nor oversold conditions, which does not provide any strong bias towards bullish or bearish momentum in the near term.
From a technical analysis perspective, the key support level to watch is around $3,770, marked by several hits over the past few days that have prevented further declines.
On the upside, resistance lies near $4,000, where Ethereum is struggling to sustain upward moves.
Source: Santiment
At the same time, a notable spike in social dominance suggests a recent increase in discussion or interest around Ethereum, which is clearly driven by ETF hype.
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The moving averages, however, show a long-term downward trend, predicting an overall decline in the level of interest in Ethereum.
Overall, Ethereum is not at risk of consolidation. This is already consolidating.