Ethereum’s Price Faces Resistance at $2,400
Ethereum has been experiencing a strong uptrend after bouncing off the lower boundary of a bullish flag pattern. However, it has encountered a significant obstacle at the $2,400 resistance zone.
Technical Analysis
According to TradingRage, the daily chart shows a bullish trend since October, with the market breaking above the 200-day moving average. This indicates a shift to a bullish trend. Despite this positive momentum, ETH is currently being held back by the $2,400 level. It is expected to retest support levels at $2,100 or even $2,000 before potentially resuming its upward movement.
The 4-Hour Chart
On the 4-hour chart, the price of Ethereum has been following a bullish trendline. However, it is currently approaching this trendline again. While there is a possibility of another rebound from this level, there is also a risk of a breakdown that could lead to a deeper correction in the near future.
On-Chain Analysis
TradingRage also provides insights from on-chain analysis. The open interest metric for Ethereum futures contracts on all exchanges has been steadily increasing as the price rises. This indicates growing confidence among futures traders in the direction of the trend. However, there have not been any significant spikes in open interest yet, suggesting that the current uptrend may be sustainable without overheating the futures market.
Hot Take: Ethereum Faces Resistance at $2,400 but Shows Promise for Further Upside
Ethereum’s price has encountered resistance at the $2,400 level but remains in a bullish trend overall. Technical analysis suggests that a retest of support levels may be necessary before a potential breakout. On-chain analysis indicates growing confidence in the upward movement, with the futures market showing sustained interest without overheating. While there is a risk of a deeper correction, Ethereum’s long-term prospects remain positive as it aims for higher values in the coming weeks.
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