Ethereum buyers have been struggling to push the price above the important $2K resistance region. However, the price is currently trading in a crucial range bounded by that level and the dynamic support provided by the 100-day moving average.
Technical analysis
By Shayan
the daily chart
On June 21, Ethereum managed to break above the 100-day moving average and continued its prevailing uptrend after a pullback, finally reaching the critical resistance area at $2K. However, the bullish momentum faded as selling pressure increased around this level, resulting in minor rejections.
However, the price finds support at the 100-day MA, currently sitting at $1,867, which has prevented further declines in recent weeks. A breakout of this significant price range will likely play a pivotal role in determining the overall outlook for Ethereum in the medium term.
The 4 hour chart
Looking at the 4-hour time frame, a downtrend for Ethereum becomes apparent, as the price broke below its multi-week uptrend line after facing rejection at the $2K resistance zone. A subsequent pullback confirmed the breakout.
At present, ETH remains confined between two critical price levels: the static resistance at $2K and the critical support at $1,850. This suggests the potential for a range-bound leg of the market characterized by consolidation candles and the absence of a strong trend.
The price is expected to remain within this range until a breakout occurs, which reveals the next direction for Ethereum.
chain analysis
By Shayan
The chart provided shows the estimated leverage ratio in correlation to the ETH price. This metric measures the average leverage employed by participants in the futures market. In general, higher values indicate that more investors are assuming greater leverage and risk in the derivatives market.
In recent weeks, the estimated leverage ratio has seen a slight increase, suggesting that the futures market may be overheating due to recent upward price trends. However, it has not yet reached worrying levels. However, if the metric continues to rise, caution is advised as it could lead to a short or long compression event.
In such a scenario, the Ethereum price could experience a sudden and significant movement.
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cryptocurrency charts by TradingView.
