ethereum price has encountered challenges in breaking below the critical $3,000 support region, and the selling pressure has been covered by sufficient demand, resulting in sideways consolidation. However, a sudden breakdown of this fundamental juncture could trigger a cascading effect.
By shayan
The daily chart
Examining the daily chart, ethereum's trajectory has turned bearish following a notable rejection near the $4K mark, fostering a bearish sentiment among market participants.
However, the decline found a temporary recess as it reached a substantial support region, encompassing the crucial $3,000 mark and the price range between the 0.5 ($3,133) and 0.618 ($2,906) Fibonacci levels. This support area aligns closely with the critical 100-day moving average, indicating significant demand near this crucial threshold.
ethereum is currently experiencing a sideways consolidation phase, with the price hovering around the important $3K support region. This suggests possible accumulation underway, which could pave the way for a solid bullish resurgence in the near term. However, an unexpected breakout of this crucial support zone could trigger a cascading effect, with the next target situated in the $2,500 region and the 200-day moving average of $2,600.
The 4 hour chart
Analysis of the 4-hour chart reveals that ethereum's multi-month decline has led to the formation of a falling wedge pattern, with the price finding support at the lower boundary of the pattern on multiple occasions.
Currently, ethereum is seeing a sideways movement near the lower boundary of the wedge pattern, corresponding to the $3K support region, indicating increased buying pressure in the market.
Despite this, the cryptocurrency appears poised to continue its consolidation within the price range bounded by the $3,400 resistance region and $3,000 support. Given the recent price action and the prevailing sentiment in the market, there is an expectation that the price will successfully break through this decisive range, which could culminate in a renewed bullish trend towards the $3.6 thousand threshold.
By shayan
Amid ethereum's multi-month bearish trend, initiated by its rejection near the $4,000 mark, investors are closely monitoring the behavior of traders in the futures market. The chart provided shows the liquidation heatmap for the Binance eth/USDT pair, highlighting price levels with significant liquidity capable of impacting the price trend.
It is evident that the sudden drop below the critical $3,000 level resulted in the liquidation of a substantial number of long positions, triggering a cascade of sell orders. However, since then, the price has been hovering around the crucial and psychological $3,000 support region, which could indicate an accumulation stage in the market.
Considering the potential demand near this fundamental threshold, it is anticipated that the price will begin a new upward movement once the accumulation stage concludes. Traders should monitor the price action around the $3,000 level as a sudden break below this crucial mark could trigger a cascading effect towards the $2,500 threshold.
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Cryptocurrency charts by TradingView.
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