Technical Analysis
Ethereum has seen a shift in market sentiment as it finds support around the 100-day moving average. The price has rebounded and is now approaching a crucial resistance region, which will determine its next move.
The Daily Chart
Examining Ethereum’s daily chart reveals that the 100-day moving average has provided strong support. The price is now approaching a critical resistance region, which includes the lower boundary of an expanding wedge pattern and the $2.6K price zone. Breaking this resistance could lead to increased bullish movements and higher volatility.
The 4-Hour Chart
On the 4-hour chart, Ethereum faced significant buying pressure after a cascade, triggering a reversal. The price is currently facing a major resistance region at $2450 and an ascending trendline. This resistance has proven to be formidable so far. The upcoming price action around this level will determine Ethereum’s next direction.
On-chain Analysis
An analysis of Ethereum’s exchange netflow metric shows the disparity between coins entering and exiting exchanges. Positive values indicate increased selling pressure, while negative values suggest accumulation. Currently, the metric is showing a decline after a period of consolidation, indicating potential accumulation in the market. If this behavior continues, Ethereum could experience another upward rally in the mid-term.
Hot Take: Ethereum’s Next Move Hangs in Balance
Ethereum’s recent price action suggests a shift from bearish to bullish sentiment, with key support levels holding strong. The upcoming movement near critical resistance regions will determine whether ETH continues its bullish retracement or faces further obstacles. Traders should closely monitor these levels to assess Ethereum’s potential trajectory. Additionally, on-chain analysis indicates potential accumulation in the market, which could further support upward momentum. Overall, the next move for Ethereum remains uncertain, but market participants should be prepared for heightened volatility in the short term.
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