Technical analysis
By shayan
ethereum‘s recent market activity has introduced a sense of uncertainty, with the price consolidating within a tight range and no clear direction. The situation becomes crucial if the price manages to break above the 200-day moving average, indicating the possibility of a significant rise.
Examining the daily chart, ethereum found a substantial resistance zone at the 200-day moving average, positioned at $1,800. This led to a sideways consolidation phase marked by slight volatility. This range has immense importance due to its psychological importance and the existing supply dynamics.
ethereum‘s lack of decisive movement in either direction creates anticipation, and a breakout or rejection will likely determine its medium-term trajectory. A successful break above this level could trigger a strong uptrend, targeting firm resistance at $2,000, while a rejection could result in a short-term decline towards the 100-day moving average at $1,700.
The 4-hour chart reveals increased volatility and a steady increase in demand, evident in ethereum‘s recent price action. However, while attempting to break the critical $1,800 resistance zone, the price encountered increased supply, resulting in a period of sideways movement.
Furthermore, ethereum appears confined within a fundamental range, bounded by the static support area at $1,700 and significant resistance at $1,800.
A breakout of this range is essential to reveal ethereum‘s subsequent direction. Given the current market scenario, there is a high probability of a prolonged consolidation correction phase in the near term. This suggests that the market could continue its sideways movement before definitively determining its next course of action.
By shayan
ethereum price recently saw a notable rise after a period of consolidation, which caught the attention of investors and traders, especially those active in the speculative perpetual futures market.
At the same time, the open interest metric, which indicates the number of active futures positions, has seen an upward trend, reaching its previous high. This suggests the possibility of greater market volatility as both long and short positions face greater liquidation risk.
This situation implies the probability of the bullish trend continuing in the medium term, given that the futures market has not yet reached a state of overheating. However, it is essential to note that the market may still experience a pullback and the possible uptrend could be accompanied by increased volatility, leading to abrupt and substantial price fluctuations.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off fees on Binance Futures for the first month (terms).
PrimeXBT Special Offer: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 in your deposits.
Disclaimer: The information found on CryptoPotato is that of the writers cited. It does not represent CryptoPotato’s opinions on whether to buy, sell or hold investments. It is recommended that you conduct 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.
<!– ai CONTENT END 1 –>
