Ethereum’s Price Faces Resistance
After a strong rally, Ethereum’s price has hit a significant obstacle. However, there are still support levels that could lead to a bullish continuation.
Technical Analysis
By TradingRage
Daily Chart Analysis
The daily chart shows that Ethereum’s price has been steadily rising after bouncing off the $1,500 support zone. The market tested the $2,400 resistance level but was rejected, leading to a drop towards the $2,100 support area. If this support holds, ETH could rally towards $2,400 and beyond. A breakdown could result in a deeper correction and a potential retest of the 200-day moving average at around $1,850.
4-Hour Chart Analysis
On the 4-hour timeframe, Ethereum’s short-term market structure looks bearish. The market has been making lower highs and lows since the rejection from the $2,400 level. However, the overall trend is still bullish as long as the trendline remains intact. If the trendline is broken, a deeper drop can be expected in the coming weeks.
Sentiment Analysis
By TradingRage
Evaluating Ethereum Funding Rates
To determine if the bullish phase is over or if Ethereum is going through a correction, it’s helpful to analyze the futures market sentiment. Positive funding rates indicate optimism among traders, while negative rates show pessimism.
The funding rates for Ethereum have been positive for some time but have recently spiked. This suggests that the market may be close to a long liquidation cascade, which could cause a rapid price plunge below $2,000.
Hot Take: Ethereum Faces Resistance but Bullish Continuation Possible
Ethereum’s price has encountered resistance after a strong rally, but there are still support levels that could lead to a bullish continuation. Technical analysis indicates that if the $2,100 support holds, ETH could rally towards $2,400 and potentially beyond. However, a breakdown could result in a deeper correction and a retest of the 200-day moving average around $1,850. Sentiment analysis suggests that the recent spike in funding rates may indicate a bearish signal, with the possibility of a long liquidation cascade that could cause the price to plunge below $2,000. Keep an eye on these key factors to gauge Ethereum’s future price movements.
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