While Ethereum is in a period of consolidation, Bitcoin’s ATH is causing a buying bounce on the crypto. Let’s take a look at ETH’s future prospects together.
Ethereum (ETH) price situation.
After suffering a near 40% decline from $3,600, Ethereum attracted renewed buying interest, which subsequently allowed it to begin a consolidation in the form of an ascending triangle. The price of ETH thus made higher and higher highs and created a resistance zone around $2,800. Recently, ETH price bounced off the $2,400 support. This latest rally formed a double bottom, a chart indicating continued bullish momentum.
At the time of writing, Ethereum is trading around $2,600. The cryptocurrency stabilizes at this price level, which is located just below a significant value zone. Thus, Ethereum broke both its monthly pivot point and its 50-day moving average. While this can be viewed positively, it should be noted that the medium-term trend of the cryptocurrency remains bearish. In terms of Ethereum’s upward momentum, we are seeing a slight recovery as shown by both the ETH price and its oscillators.
The current technical analysis was done in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, coach v Family Trhasdinga community of thousands of traders on their own account active since 2017. Here you will find lives, educational content and mutual help in the financial markets in a professional and warm atmosphere.
Focus on Derivatives (ETHUSDT)
Open interest in Ethereum perpetual contracts has followed the trajectory of its underlying asset, indicating a relatively healthy market with speculator interest mainly oriented toward buying. These observations are supported by positive funding rates. However, on the CVD side, we observe that it has diverged from these latter indicators, showing persistent selling interest in the orders placed in the market. As for liquidations, the recent increase in seller liquidations suggests a possible capitulation of selling power to buyers.
Based on the liquidation heatmap on the ETH/USDT contracts, a significant area of interest has emerged above $2,400. This seems to have generated some mild buying interest, with the price of Ethereum remaining at this level. Now, important liquidation zones are located on both sides of the current Ethereum price: above we can notice the $2,800 zone and below the $2,300 and $2,250 zones. A price approaching these levels could lead to massive order triggering, raising the risk of a period of heightened volatility for the cryptocurrency. These areas therefore represent crucial points of interest for investors.
Ethereum (ETH) price prediction.
- If the price of Ethereum remains above the $2,400 zone, a bullish continuation can be expected with a recovery target around $2,720 and another tracking resistance around $2,800. If this upward movement continues, a potential break above $3,000 can be considered, representing an increase of around 15%.
- If Ethereum fails to hold above $2,400, a pullback towards $2,300 or even $2,250 can be considered. Another key support, if the bearish movement continues, would be around $2,100, which would represent a decline of around 30%.
Conclusion
Ethereum is showing signs of recovery with an encouraging consolidation marked by stabilization in its price and renewed buying interest. Although resistance remains present, the latest technical formations suggest the potential for continued bullish growth despite the still cautious underlying trend. Therefore, it will be necessary to closely monitor the price reaction at key levels in order to verify or adjust current forecasts. Finally, remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can evolve rapidly depending on other more fundamental factors.
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