ethereum price has been correcting in recent weeks following a decisive rejection of the $4,000 resistance level in March. However, the market could be about to take a 180-degree turn.
ethereum Price Analysis: Technical Aspects
The daily chart
According to the daily chart, the price has formed a large descending channel pattern since the beginning of the correction. The lower boundary of the channel has been tested recently and pushed eth higher.
The market has also held above the $3,000 support level and investors are expecting a rally towards the $3,600 resistance zone in the near term. However, as long as the channel remains intact, a new bullish continuation cannot be expected.
The 4 hour chart
The 4-hour chart further clarifies the recent price action. It is evident that the $3,000 support level has prevented the price from falling further and the market is forming a bottom.
Currently, the cryptocurrency is heading towards the midline of the descending channel, and a break above would pave the way for the price to attack the $3,600 resistance level once again. Since the relative strength index shows values above 50%, the momentum also favors an upward movement in the coming days.
Analysis of feelings
By Shayan
ethereum Open Interest
The impact of futures market sentiment on significant price movements cannot be underestimated, as the intensity of long and short positions, along with the potential for substantial liquidations, serves as the primary catalyst for market volatility.
A crucial indicator to gauge this sentiment is open interest, which quantifies the number of perpetual futures contracts open on various cryptocurrency exchanges.
In light of ethereum's recent bearish trend, it is worth noting that the open interest metric has followed a similar trajectory, experiencing a substantial drop. This alignment suggests a slowdown in activity within the futures market.
Consequently, eth appears primed for a resurgence of long or short positions, which could initiate a new and decisive market move in either direction.
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Cryptocurrency charts by TradingView.
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