ETH has soared above $3,000, but will sellers come back? (Ethereum price analysis)

Ethereum price is facing a challenge below the important $3,000 support area, and the recent bullish rally has been driven by increased demand around this level.

However, a significant area of ​​resistance is looming in front of us, which could halt the current momentum.

Written by Shayan

daily chart

Analyzing the daily chart, we can see that Ethereum sellers are trying to push the price below the important $3,000 support area, which coincides with the Fibonacci levels of 0.5 ($3133) and 0.618 ($2906).

Despite these efforts, ETH has recently experienced a bullish rebound due to significant demand around this important benchmark, the upper bound of a multi-month descending wedge and the important 100-day moving average of 3.2,000. reached the dollar.

A sudden breakout of this important resistance zone could trigger a sharp rally, with the next target being the $3.4,000 resistance area. However, the $3.2,000 resistance area contains a notable amount of supply, which could halt any upward momentum. If a bearish rejection occurs, a sharp decline towards the lower bound of the wedge becomes imminent.

4 hour chart

A closer look at the 4-hour chart reveals a multi-week range phase as Ethereum consolidates between key support at $2.9,000 and key resistance at $3.2,000. Recently, the price has made a notable rally around the $2.9,000 threshold and has retreated towards the upper end of the wedge, which corresponds to the $3.2,000 resistance area.

This indicates a slight increase in market demand.

If the buyers manage to break out of the upper trendline of the wedge at the $3.2,000 resistance level and the bullish momentum strengthens, a strong bullish trend could emerge in the medium term. However, if buyers fail to push the price above this threshold, a reversal could occur and the current sideways range phase towards the $2.9,000 support continues.

Written by Shayan

Amid Ethereum's recent sideways consolidation and uncertain price movement, investors are closely monitoring developments in the futures market to gauge potential sentiment shifts. The attached chart displays the Ethereum Open Interest Index, which measures the number of open perpetual futures contracts across various cryptocurrency exchanges.

Higher values ​​indicate potential market volatility and trend sustainability, while lower values ​​indicate persistent market cooling.

This chart shows a significant spike in open interest after a short period of sideways consolidation, highlighting increased futures market activity and more aggressive long or short positions. Depending on the direction of these positions, this could signal the possibility of notable price movements in the short term. If the funding rate indicator also rises, the market could turn bullish again in the medium term. However, traders should be careful as this activity can come with increased volatility.