Ethereum has regained momentum after falling below $3,000. Let's take a look at the future outlook for ETH.
Ethereum status (ETH)
Ethereum price peaked at just over $4,000 and then declined, dropping to $3,000. At this price level, the cryptocurrency forms a range between this and $3,700. Unfortunately, this range broke to the downside and Ethereum fell to $2,865. Therefore, its price seems to be forming a short-term bearish trend. However, as of this writing, Ether is worth nearly $3,250. This shows that purchasing power is ready to counter this new bearish momentum. What is interesting is that Ethereum price is rejecting or attempting to regain its former support at $3,300.
Nevertheless, Ethereum's fundamental trend remains bullish. However, Ethereum’s return above its 50-day moving average would be more reassuring, as would the return of bullish momentum, ruling out a more serious reversal.
The current technical analysis was performed in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market.Currently he is a trainer family tradingis a community of thousands of proprietary traders active since 2017. There you will find live, educational content and mutual support about financial markets in a professional and warm atmosphere.
Focus on derivatives (ETHUSDT)
Open interest in the ETH/USDT contract decreased by more than 29% before stabilizing. This equilibrium occurred with a small liquidation and a small increase in the underlying assets. Regarding the funding rate, you can see that it fluctuates between positive and negative. This shows that the ETH/USDT contract is in line with the actual price of Ethereum. Therefore, all these factors indicate the balance between buyers and sellers in the perpetual ETH/USDT contract.
Last month's heatmap reveals that the ETH/USDT contract passed through an important liquidation zone between $2,300 and $2,200. Buyer interest appears to be strong, suggesting this trend will continue. Currently, the closest and most important liquidation zone is above current prices, specifically around $3,500. Further up there is a $3,800 zone and a peak $4,100 zone. You'll need to dig deeper to identify the notable zones below. In particular, we can focus on the liquidation zone between $2,800 and $2,700. When prices approach these levels, they can trigger heavy order execution, increasing the risk of periods of increased volatility for Ethereum. These areas therefore represent potentially important points of interest for investors.
Possible scenarios for Ethereum price (ETH)
If Ethereum price sustains above $2,865, we can expect a return to $3,700. If the bullish move continues, the next resistance level to consider would be around $4,000. At this point, this represents an increase of more than +25%.
If Ethereum price cannot sustain above $2,865, it could consider a move back to around $2,700. If the bearish move continues, the next support to consider would be around the $2,400 to $2,500 price range. At this stage, this corresponds to a drop of nearly -26%.
conclusion
Despite the recent decline, the recovery of higher price levels indicates sustained demand for Ethereum. The ability of a cryptocurrency to stabilize and regain previous support is critical to demonstrating resilience in the face of market fluctuations. Therefore, it is important to carefully observe price reactions to various key levels in order to confirm or invalidate current assumptions. In each scenario, it is also important to remain alert to potential 'fakeouts' or market 'squeezes'. Finally, please keep in mind that these analyzes are based solely on technical criteria and that crypto prices can fluctuate rapidly due to other more fundamental factors as well.
Maximize your Cointribune experience with our Read to Earn program! Earn points and access exclusive benefits every time you read an article. Sign up now and get rewards.
In 2017, Family Trading helped active traders raise capital, continued trading with financial institutions, ensured the safety of CryptoMone, and supported Erie FT, the passion of investors and traders. Marche Cryptocurrency trading.
Disclaimer:
The content and products mentioned on this page are in no way endorsed by Cointribune and should not be construed as Cointribune being responsible for them.
Cointribune strives to provide its readers with all relevant information available, but cannot guarantee its accuracy or completeness. Before taking any action regarding our company, we ask our readers to make their own inquiries and accept full responsibility for their decisions. This article does not constitute investment advice or an offer or solicitation to purchase any products or services.
Investing in digital financial assets involves risks.
read more
