$2000 or $2500 Next? (Ethereum Price Analysis)

After a period of consolidation near the $1,500 mark, ethereum buyers returned to the market, successfully reclaiming the $2K resistance region.

However, after a notable surge, eth has run into a crucial price range and is currently struggling to break through it.

Technical analysis

By largest merchant

Over the past two months, ethereum has enjoyed a positive trend, rising steadily. Consequently, increased buying pressure facilitated the rise above the important resistance at $2,000, leading to a continued rally. Consequently, eth price has recently seen a sharp rise, targeting the crucial $2.3K resistance region.

This price range presents a substantial hurdle for ethereum buyers, encompassing the static resistance at $2,300 and the dynamic resistance of the wedge's upper trendline.

The trendline has proven to be a major barrier on three occasions, hampering ethereum's bullish trends. However, if the price successfully recovers this crucial region, the $2.5K mark could be the next destination for ethereum.

Examination of the 4-hour chart reveals that after finding support near the $1,500 mark, ethereum started a solid uptrend, indicating the dominance of buyers. This resulted in a substantial rise, breaking multiple resistance levels including the critical $2,000 resistance.

However, upon reaching the crucial $2,400 resistance region, the uptrend lost momentum and the price formed a rising wedge pattern.

At the same time, a bearish divergence between the price and the RSI indicator expanded for two months, suggesting possible overvaluation of ethereum at this time.

Given the current market dynamics, while the overall sentiment is bullish and buyers appear to be in control, there is a notable likelihood of a temporary consolidation correction phase in the near term, accompanied by increased volatility.

However, in case of a sudden break above the decisive $2,400 resistance zone, the market could witness a substantial rise, with a potential trend towards higher resistance levels.

By largest merchant

ethereum price has recently demonstrated a significant upward trajectory, marking a departure from months of consolidation and gradual decline.

This increase has generated a notable bullish sentiment, reinstating demand within the market. The accompanying chart illustrates the 30-day moving average of the buyers' bid-sell ratio metric, a valuable indicator for gauging futures market sentiment. In this metric, values ​​below 1 signify bearish sentiment, while values ​​above 1 are indicative of bullish sentiment.

Interestingly, the buyers bid-sell ratio metric has shown a notable decline, falling below 1 at the same time as ethereum's substantial rise to higher price levels. This development suggests the possibility of an imminent correction stage, as the significant drop in the metric implies that participants may view this price range as an opportunity to lock in profits by selling their ethereum holdings.

Therefore, there is a possibility that the market will go through a consolidation correction phase before determining its next course of action. This cautionary note is based on the observed divergence between the increase in price and the decrease in the bid-ask ratio, indicating a possible change in market dynamics.

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