The price of ethereum has finally started to rise, after bitcoin hit all-time highs. However, it is still far behind btc and has a long way to go before reaching a new all-time high.
Technical analysis
By Edris Derakhshi (TradingRage)
The daily chart
On the daily chart, the price has been rising recently after a bullish breakout from $2,800, which has kept the market lower for the past few months.
The $3,000 level and the 200-day moving average (located near $3,000) have also been broken to the upside.
However, the market is now pulling back towards the $3,000 area as the RSI has entered an overbought region. If this level and the 200-day moving average can hold, ethereum may continue its bullish trend towards higher prices in the coming weeks.
The 4 hour chart
The 4-hour chart also demonstrates a similar condition for the price of ethereum, which has been rising in recent weeks. However, the cryptocurrency has been retreating towards the $3,000 support while creating a falling wedge pattern.
If the wedge breaks to the upside, the market is likely to run towards the $3,500 resistance level. On the other hand, a break of the $3,000 level could result in a 10% drop towards the $2,700 area.
Sentiment analysis
By Edris Derakhshi (TradingRage)
ethereum Open Interest
ethereum price is finally rising after months of consolidation. While a new all-time high has yet to be reached, futures market metrics show an interesting and worrying sign.
This chart features the ethereum open interest metric, which measures the number of open perpetual futures positions in eth among all exchanges. Higher values are usually associated with higher volatility and more chances of a sudden drop.
As the chart shows, ethereum open interest has been at its highest level in recent years. This is a clear divergence between the price and futures market activity, as the price has not yet reached a new high. As a result, the market is likely to explode in the short term, but the direction remains to be seen as more data is needed to make a correct prediction.
The post ethereum Price Analysis: eth Heading To $3,500 This Week? appeared first on CryptoPotato.
