Technical Analysis
Ethereum recently experienced a surge to $2.4K, but faced selling pressure and was rejected. The cryptocurrency is now in a critical price range, and its next moves will depend on whether it can break out of this range.
The Daily Chart
Ethereum has shown significant bullish signals, with the price surpassing the resistance level of $2.1K and reaching an annual peak of $2.4K. However, there was a temporary setback as the price faced rejection at the upper boundary of the wedge pattern. A brief retracement is likely before the next bullish move, with the $2K support zone being the next target.
The 4-Hour Chart
In the 4-hour chart, Ethereum’s upward momentum stalled at a pivotal resistance zone around $2.4K. The bearish divergence between the price and RSI indicator triggered a rejection. The cryptocurrency has reached a crucial support region between $2,211 and $2,166 Fibonacci levels and the static support level of $2K. A breach below these levels could indicate a significant market downturn.
On-chain Analysis
Examining Ethereum’s open interest in the futures market can provide insights into its overall prospects. Higher values indicate increased volatility and potential bearish reversals, while lower values suggest a more sustainable trend. The open interest has been gradually rising but is still below all-time high levels. This suggests that while corrections are possible, the futures market is not overheating. The current bullish trend supported by moderate levels of open interest is expected to continue in the coming weeks.
Hot Take: Ethereum’s Price Surge Faces Resistance at $2.4K
Ethereum recently experienced a surge in price, reaching $2.4K. However, selling pressure resulted in a rejection and the cryptocurrency is now within a critical price range. Technical analysis suggests the possibility of a brief retracement before the next bullish move, with the $2K support zone as the next target. The 4-hour chart indicates a pivotal resistance zone at $2.4K and a crucial support region between $2,211 and $2,166. On-chain analysis shows that Ethereum’s open interest is gradually rising but still below all-time high levels, indicating that the current bullish trend may continue in the coming weeks.
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