ethereum price has apparently hit a major hurdle after weeks of aggressive rallies. However, a new bullish continuation cannot yet be ruled out, as there are several support levels available to reverse the trend.
Technical analysis
The daily chart
On the daily chart, it is evident that the price has been rising steadily after a bounce from the $1,500 support zone. The big bull flag has been broken to the upside and the market has tested the $2,400 resistance level.
However, this level has decisively rejected the price, leading to a drop towards the $2,100 support area. Should it hold, eth is likely to recover towards the $2,400 level and beyond. On the other hand, a breakout could result in a deeper correction and even a possible retest of the 200-day moving average, located around the $1,850 price mark.
The 4 hour chart
Looking at the 4-hour period, things look worrying for ethereum. The market has been making highs and lows since the rejection of the $2,400 level, demonstrating a clear bearish shift in the short-term market structure.
However, the trend is still bullish as the trend line depicted on the chart has not yet been broken. If this happens, the medium-term trend will also be considered bullish and a deeper decline can be expected in the coming weeks.
Analysis of feelings
ethereum Funding Rates
ethereum price action has been significantly bullish in recent weeks, with the cryptocurrency once again surpassing the $2,000 mark. However, eth has recently started correcting, leaving market participants wondering if the bull phase is over or if the market is simply undergoing a correction.
To answer the above question, it would be beneficial to evaluate the futures market sentiment. This chart shows funding rates, which is a useful metric of futures sentiment. It shows whether buyers or short sellers are executing their orders more aggressively overall. Positive values are usually considered bullish, while negative values show pessimism among futures traders.
It is evident that financing rates have been positive for quite some time. However, recent rates have skyrocketed. This observation may be a bearish signal as it points to the fact that the market could be very close to a long cascade of sell-offs. Should this happen, the price could quickly fall below the $2,000 level.
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).
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 –>
