Will Ethereum finally break $2,400? (ETH Price Analysis)

ethereum price has encountered a major hurdle at the critical resistance at $2,400, leading to an extended consolidation phase within this fundamental range.

This situation and the bullish sentiment in the futures market have increased expectations of a possible bullish breakout.

By shayan

ethereum Price Analysis: The Daily Chart

A close examination of ethereum's daily chart reveals a period of upward consolidation, with the price approaching substantial resistance at $2,400. This zone includes the static resistance at $2,400 and lines up with the upper boundary of a multi-month wedge pattern, forming a solid barrier. Despite this, eth is showing bullish momentum, attempting to break out of this crucial range. A successful breakout could see the price reclaim the $2,400 resistance, setting the stage for a fresh bullish rise.

However, considering the bearish divergence between the price and the RSI indicator, there is still a possibility of a bearish reversal.

Despite overall bullish market conditions, a sudden rejection can trigger a sustained cascade towards the 100- and 200-day moving averages. Therefore, caution is advised during these market conditions, given the potential for sudden impulsive moves.

The 4 hour chart

Examining the 4-hour chart, ethereum appears to be confined within a critical range, capped by substantial support at $2.1K and significant resistance at $2.4K, resulting in sideways consolidation. Notably, the $2.100 level aligns with the crucial range between the 0.5 and 0.618 Fibonacci retracement levels, acting as a notable barrier against the sellers.

Despite this consolidation, the price has risen recently, reaching its previous high near the $2,440 mark. However, the outcome depends on whether buyers can reclaim the $2,400 resistance. If successful, an upward trend is likely. On the contrary, a rejection could cause the market to fall towards the lower threshold of the range.

By shayan

ethereum's recent price performance has been notably bullish, bringing the market closer to the $2.4 resistance region. However, a recent move towards a prolonged consolidation phase has raised questions among market participants as to whether this marks the end of the medium-term bullish phase or is simply a correction.

Examining sentiment in the futures market becomes crucial to addressing this uncertainty. The chart provided illustrates funding rates, a valuable metric that indicates sentiment in the futures market by showing whether buyers or short sellers are executing orders more aggressively. Positive values ​​generally indicate bullish sentiment, while negative values ​​suggest pessimism among futures traders.

Notably, funding rates have been consistently positive, with recent trends showing an upward trajectory, indicating increased bullish sentiment in perpetual markets and fueling expectations of a bullish breakout. However, caution is advised as excessively high funding rates could be interpreted as a bearish signal.

This scenario suggests that the market could be on the verge of a long cascade of liquidations. If such liquidations occur, the price is likely to see a rapid decline towards the 200-day and 100-day moving averages. Monitoring these metrics becomes crucial to anticipate possible changes in market dynamics and adjust strategies accordingly.

<!– ai CONTENT END 1 –>