Can Ethereum bulls sustain the price above $3,000? (ETH price analysis)

Ethereum price is facing a challenge below the important $3,000 support area as the selling pressure is met by sufficient demand, resulting in a sideways consolidation. However, if this critical juncture were suddenly breached, it could trigger cascading effects.

Written by Shayan

daily chart

Examining the daily chart, Ethereum’s trajectory has turned bearish following a notable drop around $4,000, fueling bearish sentiment among market participants.

Nevertheless, the decline briefly subsided once a substantial support area was reached, including the important $3,000 mark and the price range between the 0.5 ($3133) and 0.618 ($2906) Fibonacci levels. This support area is roughly in line with the important 100-day moving average, indicating strong demand near this important threshold.

Currently, Ethereum is in a sideways consolidation phase, with the price hovering around the significant $3,000 support area. This suggests that accumulation may be underway and could pave the way for a strong bullish resurgence in the short term. However, an unexpected breakout of this important support zone could trigger a cascading effect, with the next target located at the $2.5,000 area and the 200-day moving average at $2.6,000.

4 hour chart

Analysis of the 4-hour chart reveals that Ethereum's multi-month decline has led to the formation of a descending wedge pattern, with the price finding support at the lower bound of that pattern time and time again.

Currently, Ethereum is showing sideways movement near the lower bound of a wedge pattern corresponding to the $3,000 support area, indicating increasing buying pressure in the market.

Nevertheless, the cryptocurrency appears poised to continue consolidating within the price range bounded by the $3.4,000 resistance area and $3,000 support. Considering recent price trends and general market sentiment, we believe that price could successfully break out of this decisive range and culminate in a new bullish trend towards the $3.6,000 threshold. There are expectations.

Written by Shayan

Investors are closely monitoring the actions of traders in the futures market amid Ethereum’s months-long downtrend that began with a rejection near $4,000. The provided chart displays a liquidation heatmap for the Binance ETH/USDT pair, highlighting price levels with significant liquidity that can influence the price trend.

It is clear that the sudden break below the critical $3,000 level liquidated a significant number of long positions and triggered a series of sell stop orders. However, since then, the price has been hovering around the important and psychological $3,000 support area, which may indicate an accumulation phase in the market.

Given the pent-up demand around this important threshold, we expect the price to begin a new bullish move once the accumulation phase ends. Traders should monitor price movements around the $3,000 level. A sudden break through this important mark could trigger a cascading effect towards the $2.5,000 threshold.