Ethereum
ETH Consolidates at $3,000 as Bulls Look to Make Action Soon (Ethereum Price Analysis)
Ethereum price encountered resistance as it broke the critical $3,000 support zone, leading to slight fluctuations within a crucial narrow range. However, we expect a new upward surge in the medium term, driven by emerging demand.
By Shayan
The daily chart
After analyzing the daily chart, Ethereum struggled to breach the crucial $3,000 support region with the price confined within a narrow range.
This significant range is demarcated by the Fibonacci levels of 0.5 ($3,133) and 0.618 ($2,906), closely coinciding with the critical 100-day moving average. This alignment suggests substantial demand around this pivotal threshold.
Recent price action indicates a potential increase in demand, signaling the possibility of a strong bullish rebound. However, a sudden break of this critical support zone could trigger a cascading effect, with the next support target around $2.5k and the 200-day moving average at $2.6k.
The 4-hour chart
A closer look at the 4-hour chart reveals a multi-week limited phase, with Ethereum consolidating between important support at $3,000 and critical resistance at $3.2,000.
Currently, the price is exhibiting a sideways movement within this range, moving back towards the lower boundary corresponding to the $3,000 support region. This indicates a fierce struggle between sellers and buyers.
If sellers manage to breach the $3,000 support level, a strong downtrend could emerge in the medium term. However, given the recent price momentum and prevailing market sentiment, Ethereum is expected to generate sufficient bullish momentum, potentially leading to a further uptrend towards the $3.6K threshold.
By Shayan
Amid Ethereum’s recent period of sideways consolidation and uncertain price action, investors are closely monitoring the behavior of traders in the futures market to gain insight into potential changes in market sentiment.
The provided chart illustrates the Ethereum funding rate metric, which assesses whether buyers or sellers are executing their future orders more aggressively, primarily using market orders. Positive values indicate bullish sentiment, while negative values reflect bearish expectations.
The chart reveals a significant decline in funding rates from levels seen a few months ago. Despite this decline, funding rates remain low but positive, suggesting a bullish signal. This indicates that demand is still present while the futures market is no longer overheated. Therefore, this situation suggests the possibility of price increases in the near future.
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