ETH’s Biggest Challenge Before $2K: Ethereum Price Analysis

By shayan

Last week, ethereum showed an interesting signal by breaking above the 100-day moving average, indicating the growing interest.

However, a major hurdle remains ahead, represented by the 200-day moving average. A breakthrough at this level could revive substantial demand in the market.

Inspecting the daily chart, a solid uptrend emerged from the crucial $1,500 support region, with buyers impulsively pushing the price above the 100-day moving average at $1,700. This surge revived hope and demand, evident in ethereum‘s price action over the past few weeks as it convincingly broke above the 100-day MA with a noticeably large bullish candle.

Currently, eth is facing a fundamental hurdle at $1,800, restricted by the 200-day moving average. A successful break above this level could result in a strong uptrend, targeting the solid $2K resistance. However, given the recent substantial rise, the market could undergo a temporary correction before initiating another significant move.

The 4-hour chart highlights intensified bullish momentum and steadily rising demand, clearly visible in ethereum‘s recent price action. The past few weeks have seen a compelling bullish trend for ethereum, characterized by significant bullish candles breaking through key resistance levels.

Furthermore, ethereum showed a promising signal by breaking a significant resistance zone, encapsulated by the upper boundary of the falling wedge and the static resistance level of $1.7K, confirming the wedge reversal signal.

However, the price is currently competing with a crucial resistance zone around $1,850, leading to a sideways consolidation phase. This period allows the market to regain demand and attempt to break the resistance region.

Consequently, there is a high probability that the consolidation correction stage will continue before the market definitively determines its next direction.

By shayan

The market premium metric of funds plays a crucial role as it indicates the excess of the market price over the net asset value (NAV) of the funds, which reflects the underlying assets they hold. Elevated readings indicate strong buying pressure within a specific country.

Analyzing the chart, it is evident that this metric has declined since ethereum hit its all-time high in mid-November 2021, indicating waning interest in ethereum funds. However, a notable turnaround occurred after ethereum‘s lowest point during the bear market. At that time, the metric began a modest rally.

Between January 2023 and the current date, there has been a steady growth in the ethereum fund premium, indicating an increase in investor enthusiasm for these assets. This trend points towards a growing demand for ethereum within the market.

If the ethereum fund premium persists on its upward trajectory, it means a reduction in the gap between the market price and the actual market value of ethereum contracts. This convergence strongly suggests that investors are increasingly optimistic about eth‘s potential.

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