Has eth found support in $ 2K, or is it more pain ahead?

ethereum's price is experiencing consolidation after its deep correction during the past month. However, the key supports still remain against the price, which makes a stage of bullish recoil possible.

Technical analysis

By Shayan

The daily table

ethereum has undergone deep correction in recent months, and finally reached the critical range of $ 2K. This level has a significant importance, since it has acted as a solid support zone since December 2023 and aligns with the crucial levels of optimal commercial entry (OTE).

If eth breaks below this support, you can follow a notable downward trend. However, given the historical demand at this level, the market is likely to be consolidated, with the potential for short -term bullish retractions.

The 4 -hour table

Within the lower period, ethereum's bearish market structure remains intact. It is characterized by lower minimums and lower ups and downs, pointing out the continuous domain of the seller. Recently, the asset has seen greater volatility around the $ 2K region, which leads to large settlements of leverage positions.

However, an upward divergence is emerging between the price of ethereum and the RSI indicator, which suggests a gradual increase in purchase pressure.

Given these factors, additional consolidations within the range of $ 2K- $ 2.5K are likely to be in the short term, with the possibility of greater volatility and short-term price rebounds.

Sail analysis

By Shayan

The metric of the financing rates is a crucial indicator of the domain of the buyer in front of the seller in the ethereum futures market. From the recent eth to $ 4K peak, the financing rates have decreased, indicating an increase in short positions and a general bearish feeling. This increases the probability of continuous market correction in the short term.

Although negative financing rates generally indicate the domain of the seller, the possibilities of a strange short event also increase. If ethereum experiences even a modest bullish rebound, a wave of short positions liquidations could trigger a rapid price increase, which pushes the highest market.

ethereum's capacity to stay above the $ 2K support zone will be critical to determine the next main movement. If eth stabilizes, it could pave the way for a bullish reversal, with $ 2.5ky $ 3K as key resistance levels. However, continuous sales pressure could boost the price below $ 2K, indicating a deeper descending trend. The next few days will be crucial to determine the short and medium term trajectory of ethereum.

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