The Ethereum price has been recovering from a crucial support zone. However, there is a notable resistance level that needs to be broken in order for the market to potentially move into a long-term bullish phase.
Technical analysis
By: Edris
The daily chart:
The daily chart shows a notable bounce around the $1600 level, where the 200-day moving average provided significant support last week.
Subsequently, the price rallied and successfully broke above both the $1800 resistance level and the 50-day moving average, both of which are expected to work as support going forward.
The current focus seems to be on breaking through the $2,000 psychological resistance level, followed by the important technical area around $2,300.
The 4 hour chart:
Looking at the 4-hour chart, it is evident that the price found support at the lower end of a significant falling wedge pattern, aligning with the $1600 support level.
After this support, Ethereum rallied, successfully breaking both the $1750 level and the upper bound of the wedge pattern. A bullish breakout of a falling wedge is generally considered a positive sign.
However, the price is currently finding resistance at the $1900 zone. Additionally, the RSI indicator indicates overbought conditions, suggesting the possibility of a short-term pullback or consolidation.
sentiment analysis
By: Edris
Ethereum open interest
The Ethereum price has recently experienced a rally after consolidation in recent months. This bullish move could attract the interest of investors and traders, particularly speculators in the perpetual futures market.
The open interest metric, which indicates the number of open futures positions, is currently showing relatively low value compared to current levels.
This suggests that there may be less volatility in the market until the metric rises. Consequently, it is plausible to expect a continued upward trend in the short term, unless unforeseen events alter the current scenario.
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