ethereum price is currently trapped within a significant tight range, capped by the 100-day moving average of $3,364 and the 200-day moving average of $3,212.
A break of this range will determine its next trajectory.
By shayan
The daily chart
A close examination of the ethereum daily chart reveals that following a rejection near the crucial $3,500 resistance region, the price plummeted to a substantial support zone.
This critical support includes the 200-day moving average of $3,212, which serves as a strong line of defense for ethereum buyers. However, the price is confined within a crucial narrow range bounded by the 100-day moving average of $3,364 and the 200-day moving average of $3,212. A break above this zone will bring enough demand to the market, leading to a possible bullish momentum in the price.
Conversely, a break below the 200-day moving average will signal a notable bearish bias for the market, which could lead to an impulsive drop towards the substantial and decisive support zone of $3K.
The 4-hour chart
On the 4-hour chart, it is evident that ethereum saw increased selling pressure near the crucial $3,500 resistance region, which led to a break below $3,300.
This has resulted in an impulsive bearish decline towards the crucial support zone of $3,000. However, after an impulsive move in the market, a temporary phase of consolidation and correction of the price action usually occurs.
Accordingly, the price has entered a corrective phase, retreating towards the $3,300 threshold that was broken. This development has resulted in the formation of a rising wedge pattern, which signals a continuation of the downtrend if its lower boundary is broken. Therefore, if the price completes a retracement and falls below the lower boundary of the wedge, a bearish continuation is expected, targeting the crucial support range of $2,800.
By shayan
While ethereum price has been trending lower after failing to break above the $3,500 level and rally towards its all-time high, it is beneficial to assess the sentiment of the futures market.
The attached chart presents ethereum’s funding rate metric, which measures whether buyers or sellers are executing their orders more aggressively. Positive funding rates indicate bullish sentiment, while negative funding rates show bearish sentiment.
As the chart shows, funding rates have been gradually increasing since the initial price rejection from the $3,500 level. The current funding rate values indicate that the futures market is no longer overheated and that the price could eventually start another sustainable rally if demand returns to the market.
In short, the funding rate metric suggests that market sentiment has been shifting towards a more balanced state. This shift, combined with potential renewed demand, could pave the way for ethereum to embark on a new upward trajectory, aiming to break above previous resistance levels and possibly set the stage for a rally towards its all-time high.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 on Binance (All the details).
2024 LIMITED OFFER on BYDFi Exchange: Welcome reward up to $2,888, use this link to register and open a 100 USDT-M position for free!
Disclaimer: The information found on CryptoPotato is that of the cited authors. It does not represent the opinions of CryptoPotato on whether to buy, sell or hold any investments. You are advised to conduct your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.
Cryptocurrency Charts by TradingView.
<!– ai CONTENT END 1 –>
