Technical analysis
By Commercial fury
ethereum price has been rising over the past few months, breaking through several resistance levels. However, the market is currently consolidating around the $2,000 mark, unable to continue its bullish momentum.
The daily chart
On the daily chart, the price has been consolidating around the $2,000 level after being rejected once before from the $2,150 area.
However, the $2,150 level has rejected the price once again, and the market is currently testing the $2,000 level, which has now become support. If it breaks down, a double top pattern is likely to form and a deeper decline will occur.
Considering that the relative strength index is still showing values above 50%, meaning momentum favors buyers, a bearish reversal seems unlikely.
The 4 hour chart
Looking at the 4-hour chart, the recent price range becomes clearer. The price has been forming a triangle which is a classic continuation pattern.
Therefore, in the event of an upward breakout, the market is likely to start another bullish wave. However, the Relative Strength Index is demonstrating bearish momentum at the moment, showing values below 50%. Therefore, a fall to the lower boundary of the pattern is first expected.
Analysis of feelings
Open interest
Analyzing futures market sentiment could provide beneficial information for the short term.
This chart represents ethereum open interest, which measures the number of perpetual futures contracts opened daily. Higher values typically lead to high volatility and likely bearish reversals, while lower values indicate a more sustainable trend.
Currently, it is evident that open interest has been increasing. But it has yet to reach values last seen during the all-time high range. As a result, while corrections are always possible, the futures market is still far from overheating and the current bullish trend is likely to continue in the coming weeks.
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Cryptocurrency charts by TradingView.
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