Ethereum
Ethereum Price Prediction: Why Getting to $4,000 May Take Time
- Ethereum has been trading in a range over the past ten days.
- Futures traders continue to take long positions.
An analysis for Ethereum [ETH] Price predictions showed that ETH has been moving in a horizontal channel since closing above $3,650 on May 20.
A horizontal channel forms when the price of an asset consolidates within a range for a period of time. This occurs when there is a relative balance between buying and selling pressure, which prevents the price of the asset from moving sharply in one direction or the other.
The upper line of this channel forms resistance, while the lower line forms support. For ETH, it formed resistance at $3,962, while it finds support at $3,638.
Source: ETH/USDT, TradingView
Ethereum Price Prediction Shows The Bulls Are Here
Readings observed from major ETH momentum indicators confirmed that the market was marked by equal amounts of buying and selling activity over the past few days.
Although still positioned above neutral 50, ETH’s Relative Strength Index (RSI) and Money Flow Index (MFI) have remained “flat” in recent days.
These momentum indicators are said to be flat when they move in an apparently straight line, without significant upward or downward fluctuations.
When they move this way, it suggests that there is neither strong buying pressure nor strong selling pressure. Traders interpret this to mean that there is no clear signal of a breakout up or down.
At the time of writing, ETH’s RSI was 64.92, while its MFI was 63.74.
Moreover, the decline in the average true value (ATR) of the coin confirmed the price consolidation. This indicator measures market volatility by calculating the average range between high and low prices over a specified number of periods.
Source: ETH/USDT, TradingView
When the indicator falls, it suggests less market volatility and suggests that the price of the asset is moving within a range without significant upward or downward movements.
Futures traders are unmoved
Despite ETH’s sideways price movements over the past few days, its activity in the futures market has continued to grow. Since May 20, futures open interest on the coin has increased by 42%.
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When an asset’s futures open interest increases in this way, more traders enter the market to open new trading positions. At press time, open interest on ETH futures was $16.45 per Coin glass data.
As for whether these traders are opening short or long positions, ETH’s positive funding rate on cryptocurrency exchanges has remained positive. This shows that there has been more demand for long positions than for short positions.