ETH faces key resistance at $2,800 and bears look to make a comeback

ethereum recently found support at $2.1K after a significant sell-off and experienced a slight bullish rally.

However, the price is now retreating towards the broken lower boundary of the wedge, indicating a possible completion of the pullback. This move suggests a possible bearish continuation in the coming days.

By shayan

The daily chart

A closer look at the eth daily chart reveals that following a significant market turbulence, the cryptocurrency broke below the lower boundary of the wedge at $2,800 and experienced a notable breakout. However, the price found support at the crucial support zone of $2,100, leading to a bullish reversal. Subsequently, buying pressure emerged, leading to a period of slight bullish pullbacks towards a notable resistance threshold.

This threshold marks the lower boundary of the previously broken wedge, where the prevailing supply has the potential to stop the upward momentum and reject the price in the coming days.

However, if ethereum fails to reclaim this crucial resistance, a pullback will be complete, leading to a potential bearish continuation that will target significant support at $2.5K.

The 4-hour chart

On the 4-hour chart, eth’s bullish recovery is evident. The price experienced a period of upward retracements, marking higher and higher highs and lower lows.

However, the cryptocurrency is now facing a formidable resistance region between the $2.6K and $2.8K Fibonacci levels.

This range serves as the primary target for the corrective leg of the market, and it has the potential to reject the price in the coming days. On the other hand, during the recent pullbacks, eth has emerged within a bearish continuation triangle pattern, which further emphasizes the bearish continuation scenario.

However, if the price faces rejection and falls below the lower boundary of the triangle, the continuation of the downtrend towards $2,100 will be imminent. Overall, the action in the coming days will be crucial in determining ethereum’s next move, with current indicators favoring a bearish outlook.

By Commercial fury

Following the recent crash, many investors have suffered significant losses, especially in the perpetual futures market. Therefore, analyzing the updated state of the futures market could be beneficial in order to better understand the current market dynamics.

This chart presents ethereum's open interest metric, which measures the number of open futures positions, both short and long. Higher values ​​are typically associated with higher volatility, while lower open interest typically leads to better price stability.

As the chart suggests, open interest has dropped significantly following the recent price drop, indicating a massive amount of liquidations. If there is enough demand in the spot market, this can lead to a good outcome as the market may experience a more sustainable uptrend.

<!– ai CONTENT END 1 –>