Ethereum’s Recent Upward Movement
Ethereum has experienced a significant surge, reaching a yearly high of $2717. However, this ascent has been met with selling pressure, leading to a slight retracement and the possibility of a short-term consolidation correction.
Technical Analysis: The Daily Chart
Examining Ethereum’s daily chart, we can see that it has formed an ascending expanding wedge pattern. If the price breaks below the lower boundary of this pattern, it could indicate a bearish reversal. Additionally, the price encountered resistance at the $2.7K level, leading to a retracement and potentially a pullback to the multi-month ascending wedge pattern.
The 4-Hour Chart
On the 4-hour chart, Ethereum is currently in a correction phase within a range of $2.4K support and $2.7K resistance. The lower boundary of this range aligns with a strong support zone based on Fibonacci retracement levels. If buyers step in at this support zone, we could see an upward movement. However, if there is a bearish breakout, sellers may target the multi-week ascending trendline.
On-chain Analysis
Examining Ethereum’s futures market sentiment through funding rates, we can see that there has been an upward trajectory in line with the price surge. This indicates a bullish sentiment in the market. However, elevated funding rates raise concerns about potential overheating and a long-squeeze event. Following a short-term correction, funding rates have declined, suggesting a cooling-off in the perpetual markets and the potential for the price to resume its upward movement.
Hot Take: Ethereum’s Upward Momentum and Potential Correction
Ethereum has shown significant upward momentum recently, reaching a yearly high. However, this surge has been met with selling pressure and the possibility of a short-term consolidation correction. Technical analysis suggests that Ethereum is in an ascending expanding wedge pattern and may experience a pullback to a lower boundary. On the 4-hour chart, there is a crucial support zone that could lead to renewed upward movement if buyers step in. On-chain analysis indicates a bullish sentiment but raises concerns about potential overheating. Overall, while Ethereum’s upward trajectory is promising, caution should be exercised as a correction phase may be imminent.
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