ETH is uncertain above $2,200, but is a drop towards $2,000 in play? (Ethereum Price Analysis)

ethereum price is currently finding it difficult to rise after weeks of aggressively bullish price action. However, there are still several support levels nearby that could prevent the cryptocurrency from falling further.

Technical analysis

By Commercial fury

The daily chart

On the daily chart, the price has risen since breaking above the 200-day moving average and the large descending channel. While eth is still trading above the key $2,000 level, it is going through a consolidation phase below the $2,400 level and failing to move higher.

The relative strength index is also hovering around the 50% level, which points to a balance in momentum. As a result, the near-term price action largely depends on whether the cryptocurrency falls below the $2,000 level or successfully breaks above the $2,400 level to target the $2,700 resistance zone.

The 4 hour chart

If we look at the 4-hour chart, it is evident that the price has been oscillating between the $2100 and $2400 levels for the last month. After the recent rapid fall towards the first zone, eth has recovered and is consolidating in the middle of the range.

Therefore, while the market structure remains relatively bullish, things could go in either direction, depending on the direction of the possible breakout of the mentioned range.

Analysis of feelings

By shayan

ethereum Open Interest

ethereum has seen a major bullish trend in recent months, going from under $1,000 to over $2,400. Currently, the price shows uncertainty about its future path, leading to a closer look at the futures market sentiment for valuable information.

The chart provided illustrates the open interest metric across all exchanges, counting the number of open futures contracts regardless of trading direction. Higher values ​​indicate confidence among futures traders regarding the trend, while lower values ​​suggest uncertainty. Furthermore, rising open interest correlates with higher price volatility, increasing the likelihood of liquidation cascades.

While the price has followed an uptrend, the open interest has been steadily increasing, indicating a bullish sentiment in the market. However, a recent phase of sideways consolidation has coincided with a notable drop in open interest. This suggests that many long positions have been eliminated, indicating a healthy futures market, which could pave the way for a renewed impulsive trend. However, the direction of the next trend remains uncertain until the funding rate metric sees a notable move, either above or below one.

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