ETH surpasses $3K, but will sellers return? (Ethereum Price Analysis)

ethereum price has faced challenges in breaking below the critical $3,000 support region, with a recent bullish rally fueled by increased demand near this level.

However, a major resistance region looms that could stop the current momentum.

By shayan

The daily chart

An analysis of the daily chart shows that ethereum sellers have been attempting to push the price below the crucial $3,000 support region, which aligns with the 0.5 ($3,133) and 0.618 ($2,906) Fibonacci levels. ).

Despite these efforts, eth recently experienced a bullish bounce due to significant demand around this key threshold, reaching the upper limit of a multi-month falling wedge and the crucial 100-day moving average at $3.2K.

A sudden breakout of this critical resistance zone could trigger an increase, with the next target being the $3,400 resistance region. However, the $3,200 resistance region has the potential to halt the bullish momentum as it includes a notable amount of supply. If a bearish rejection occurs, a plummet towards the lower boundary of the wedge becomes imminent.

The 4 hour chart

A closer look at the 4-hour chart reveals a multi-week range-bound phase, with ethereum consolidating between the significant support at $2,900 and the critical resistance at $3,200. Recently, the price saw a notable rise near the $2.9k threshold, retreating towards the upper boundary of the wedge, which corresponds to the $3.2k resistance region.

This indicates a slight increase in market demand.

If buyers successfully break above the upper trend line of the wedge at the $3,200 resistance level and the bullish momentum strengthens, a strong medium-term uptrend could emerge. However, if buyers fail to push the price above this threshold, a reversal may occur, which would lead to the continuation of the current sideways range phase towards the $2,900 support.

By shayan

Amid ethereum's recent sideways consolidation and uncertain price action, investors are closely watching futures market behavior to gauge potential changes in sentiment. The accompanying chart shows ethereum's open interest metric, which measures the number of perpetual futures contracts open on various cryptocurrency exchanges.

Higher values ​​suggest possible market volatility and trend sustainability, while lower values ​​indicate a cooldown in perpetual markets.

The chart shows a significant increase in open interest following a brief period of sideways consolidation, highlighting increased activity in the futures market and more aggressive long/short positions. Depending on the direction of these positions, this suggests a possible notable price movement in the near term. If the funding rates metric also rises, the market could prepare for renewed bullish trends in the medium term. However, this activity can be accompanied by increased volatility, so traders should proceed with caution.

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