Ethereum Price Analysis: Is a Bounce to $1.8K Possible Despite ETH Price Depressing?

Ethereum Price Analysis: Is a Bounce to $1.8K Possible Despite ETH Price Depressing?


Ethereum’s Price Consolidation Following Recent Drop

Ethereum’s price has yet to show any indications of recovery after a whole lot of fall from the critical $2,000 resistance level. Although while the digital currency is as of now consolidating within a narrow range, there are indicators that suggest probable price movements in the short term.

Technical Analysis: Daily Chart

On the daily timeframe, Ethereum’s price has been holding around the $1,650 level of support in the past few days, following a strong rejection from $1,750. Considering the present price behavior and overall market structure, it is more likely that the price will experience a further decline towards the $1,400 level rather than a rebound towards $2,000. In addition, the bearish crossover of the 50-day and 200-day moving averages signals a negative trend that could lead to another collapse soon.

Technical Analysis: 4-Hour Chart

Examining the 4-hour timeframe, the momentum is clearly favoring sellers, and the price has been struggling with the $1,650 level of support. A breakdown below this level seems more probable. The RSI indicator likewise indicates bearish momentum in this timeframe, increasing the chances of a further decline. Nonetheless, if the $1,650 level holds and pushes the price over the $1,750 resistance zone, this scenario may fail.

READ NOW
Can Approval of an Ethereum ETF Propel ETH Price to $2,500?

On-Chain Analysis: Ethereum (ETH) Funding Rates

Regardless of the recent bearish trend, analyzing the futures market can provide insights into short-term price expectations. The Ethereum (ETH) funding rates metric represents periodic payments to traders based on the difference between perpetual contract markets and spot prices. Positive funding rates indicate positive trend sentiment, while negative rates indicate bearish expectations. Regardless of the price decrease, the funding rates for Ethereum (ETH) remain positive, suggesting that futures traders are still hopeful for a probable rally. Nonetheless, positive funding rates could trigger a long liquidation cascade, leading to another decline.

READ NOW
Binance Restarts Operations in Belgium Following Three-Month Hiatus

Hot Take

Although while Ethereum’s price is as of now consolidating and showing some indications of probable recovery, technical analysis and on-chain indicators suggest a more bearish outlook. Traders should be cautious and closely monitor price movements for probable further declines. Positive funding rates in the futures market may indicate optimism, but they likewise carry the risk of a long liquidation cascade. Stay notified and consider these factors when making investment decisions.

READ NOW
The Future of Digital Currency: Exploring XPLA Coin
Author – Contributor at | Website

Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.

READ NOW
Pre-Ether Futures ETF Launch Witnesses FTX Exploiter Transferring 5,000 ETH
Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.




Follow us

Latest Crypto News

Share via
Share via
Send this to a friend