Ethereum’s price rise has apparently stopped after rallying in the past two weeks. With several key resistance levels broken, the market looks likely to enter a bullish phase. However, some warning signs are emerging.
Technical analysis
For: Edris
The daily chart:
On the daily time frame, the price broke above the $1,300 resistance level and the 200-day moving average is around the $1,400 mark. However, the bullish momentum has been fading recently, making a move likely. bearish retracement
The RSI indicator, which has been showing an overbought signal for a while, is now declining. This decline indicates a potential pullback or even a reversal. In this case, the 200-day moving average and the $1,300 level should be considered support levels.
On the other hand, the $1800 level is the next significant resistance zone and the target of a further rally on the daily time frame.
The 4 hour chart:
Looking at the 4 hour chart, the lack of bullish momentum can be seen more clearly. The price microstructure has apparently turned bearish, but the $1650 resistance area is yet to be reached, and the cryptocurrency could still move higher to test it.
The RSI indicator is also giving a significant warning signal, with a visible bearish divergence forming between the recent highs. While a continuation to the $1650 level still looks likely, a short-term pullback could be expected either before testing the $1650 level or after.
chain analysis
For Shayan
The chart below shows the estimated leverage ratio metric alongside the Ethereum price. The metric measures the open interest of the exchange divided by its coin reserve, indicating how much leverage participants use on average.
Higher values indicate that more investors are taking high leverage risk in the derivatives market. Due to the recent significant uptrend in the Ethereum price, the metric experienced a sudden drop indicating that a considerable number of short positions were liquidated.
This provides an excellent opportunity for bulls to regain demand in the futures market by taking long positions and initiating a rally towards higher price levels.
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