The overall outlook for Ethereum is bullish, but the price is currently facing significant resistance and struggling to overcome it. Given the recent action, a short-term rejection is possible before the next trend.
By Shayan
the daily chart
Ethereum bulls are having trouble pushing the price above the important $1.8K resistance region. After reaching this crucial range, Ethereum began to consolidate with no clear direction, resulting in some boring price action.
This indicates a battle between sellers and buyers, and a breakout of this range will likely determine the short-term direction of ETH. However, the clear significant bearish divergence between the price and the RSI indicator suggests that there is a greater possibility that the price will experience a short-term rejection before initiating the next bullish rally.
The 4 hour chart
The near-term future direction of the Ethereum price remains uncertain, with recent actions offering no clear indications. However, there are two crucial support and resistance levels that Ethereum is facing: the $1,700 level as support and the upper trend line of the channel at $1,900 as resistance.
A break above the upper trend line of the channel would signal a bullish turn in the longer-term outlook. Conversely, a sharp decline and a drop below the mid-bound level could indicate a downtrend, with the next support level at the $1.5K mark.
By Shayan
This chart shows the 14-day moving average of the funding rate metric along with the price of Ethereum. In recent months, the latter has shown an upward trend and general market sentiment has turned positive. This change in sentiment is reflected in the funding rate metric.
However, during a recent shakeup, the funding rate metric also tanked, falling below 0 for a brief period of time.
However, after another bullish price rally, the metric also retook 0 and turned green, indicating bullish sentiment in the market. However, Ethereum’s overall bias is bullish in the medium term, and the metric should be closely monitored to avoid losses due to sudden price drops.
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cryptocurrency charts by TradingView.
