Is ETH still on track to hit $2,500 after the correction? (Ethereum Price Analysis)

In the wake of a notable surge that propelled ethereum to a yearly high of $2.4K, the subsequent encounter with selling pressure resulted in a notable rejection.

Currently, eth is within a critical price range, and a breakout of this range will likely set the course for the cryptocurrency's next moves.

Technical analysis

By shayan

ethereum has shown significant bullish signals, and the price is showing a solid uptrend that retraced above the fundamental resistance level of $2,100. Despite a temporary setback, the cryptocurrency maintained its upward trajectory, reaching a yearly high of $2.4 thousand. This AP suggests a revived bull market, reflecting renewed demand and increased buying interest among market participants.

It is crucial to recognize that short-term corrections typically follow every bullish rally. As evident from the chart, ethereum's upward momentum faced rejection as it reached the upper boundary of the wedge, resulting in a 10% drop.

The divergence between the price and the RSI indicator also supports the probability of a brief pullback before initiating the next bullish move. In such a scenario, the $2K support zone is anticipated to be the next destination for ethereum in the daily period.

A closer examination of the 4-hour chart reveals that ethereum's strong upward move lost momentum as it encountered a fundamental resistance zone, encompassing the $2,400 price range and the upper threshold of the rising wedge pattern. On the other hand, the extended bearish divergence between the price and the RSI played a crucial role in causing a substantial rejection.

However, ethereum has already reached a crucial support region, spanning the price range between 0.5 ($2,211) and 0.618 ($2,166) Fibonacci levels and the $2K static support level. A break below these critical support levels may indicate a significant decline in the market.

Despite the prevailing bullish sentiment and the apparent control of buyers in the current market dynamics, there is a notable probability of a temporary consolidation correction phase in the near term, accompanied by increased volatility.

By shayan

ethereum price has recently surged, reclaiming the $2.1K price range, raising expectations among market participants about the start of a new long-term bull market. Consequently, examining sentiment in the futures market can offer valuable insights into the overall outlook for ethereum.

This chart illustrates ethereum open interest, a measure of the number of perpetual futures contracts opened daily. Typically, higher values ​​indicate greater volatility and possible bearish reversals, while lower values ​​suggest a more sustainable trend. As the chart clearly illustrates, a gradual increase in the open interest metric often accompanies bullish market phases. However, if the metric reaches elevated levels, it could indicate a possible major market reversal.

Open interest has been on an upward trajectory, but has not yet reached the values ​​seen during all-time highs. Consequently, while corrections are always possible, the futures market is still far from overheating. The current bullish trend, supported by moderate levels of open interest, is likely to persist in the coming weeks. Monitoring this metric will be essential to evaluate potential changes in market sentiment and adapt strategies accordingly.

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