Ethereum’s Price Decline and Potential for Further Drop
Ethereum’s price has been declining rapidly after facing rejection at the $2,750 resistance level. Although there might be a further drop in the short term, the overall bullish trend may not be completely over.
Technical Analysis: The Daily Chart
On the daily chart, Ethereum has been moving within a large ascending channel. The upper boundary of the pattern, combined with the $2,750 resistance level, has caused the price to decline. Currently, the market has fallen below the $2,400 level and is testing it. If the price fails to rise above this level, there is a significant possibility of further decline towards the 200-day moving average around $2,000.
Technical Analysis: The 4-Hour Chart
Examining the 4-hour chart provides a clearer view of recent price fluctuations. After being rejected from the $2,750 level, Ethereum experienced a significant drop. Currently, it is consolidating between the $2,400 and $2,150 levels. The market’s mid-term fate depends on whether there will be a breakout in either direction. The Relative Strength Index (RSI) is hovering around the 50% level, providing limited insight into the market’s next move.
Sentiment Analysis: Ethereum Funding Rates
During Ethereum’s recent price decline, sentiment analysis can help determine future price direction. One valuable indicator is funding rates in the futures market. These rates indicate whether buyers or sellers are more aggressive in executing orders. Positive values suggest aggressive buying pressure, while negative values indicate aggressive selling pressure.
The current funding rates still show positive values. Although not necessarily negative, this pattern resembles what happened when prices crashed from the previous all-time high in 2021. There is still potential for long liquidations, which could push the price lower. Therefore, while stability is observed now, a deeper decline remains a possibility.
Hot Take: Ethereum’s Price Decline and Potential Rebound
Ethereum has experienced a significant price decline after facing resistance at $2,750. While there may be further drops in the short term, it is important to note that the overall bullish trend might not be over. Technical analysis reveals that Ethereum is currently consolidating between $2,400 and $2,150, with the mid-term direction depending on a breakout in either direction. Sentiment analysis indicates that funding rates are still positive, suggesting potential for further decline but also the possibility of a rebound. It will be crucial to monitor key levels and market sentiment to gauge Ethereum’s future price movement.
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