Ethereum

Interesting Metric Sparks Hopes for Reversal as ETH Clashes With $2.2K Support (Ethereum Price Analysis)

After facing rejection from the formidable resistance zone at $2.6K, Ethereum underwent a substantial downturn, breaking through multiple critical support levels.

However, it has now landed at a substantial and decisive range, suggesting the possibility of a bullish reversal.

By Shayan

Ethereum Price Analysis: The Daily Chart

A detailed analysis of Ethereum’s daily chart reveals a notable rejection after attempting to surpass the $2.6K resistance, resulting in a 20% decline. Concurrently, the price breached two vital support zones, the upper boundary of the multi-month ascending wedge and the lower boundary of the short-term expanding wedge, signaling prevalent selling pressure in the market.

This negative sentiment is further underscored by a significant bearish divergence between the price and the RSI indicator on the daily chart, acting as a catalyst for the downward momentum.

Nevertheless, Ethereum is currently approaching a substantial support zone, encompassing the 200-day moving average and aligning closely with the pivotal static support at $2.1K. Consequently, a potential reversal leading to a consolidation phase appears to be the most likely mid-term outcome.

eth_price_chart_2501241 — Source: TradingView

The 4-Hour Chart

Analyzing the 4-hour chart – following an impulsive surge, Ethereum encountered considerable selling pressure, initiating a correction phase. This heightened selling activity led to an aggressive and sharp decline, resulting in a successful break below the multi-month ascending trendline, highlighting the dominance of sellers in the current market conditions.

At present, the ETH price has reached a significant support region, defined by the decisive static zone at $2.1K. This crucial level has effectively halted numerous downward attempts in recent months, establishing itself as a robust barrier against sellers.

The expectation is that the price will find support around the $2.1K zone, directing in a mid-term consolidation stage bounded by the $2.1K significant support and the $2.5K noteworthy resistance. Meanwhile, should a bullish retracement materialize, leading to a pullback to the broken trendline, the potential for a continuation of the bearish leg becomes imminent.

eth_price_chart_2501242 — Source: TradingView

By Shayan

While Ethereum’s value has experienced a decline, an intriguing signal emerges from the underlying dynamics of the futures market.

The provided chart illustrates open interest, a pivotal metric for assessing sentiment in the futures market. Open interest gauges the number of active futures positions, with higher values typically correlating with increased volatility and vice versa.

Amidst the recent correction, a significant decline in the open interest metric is a noteworthy development. This, accompanied by positive funding rate readings, indicates that the prevailing sentiment remains bullish, simultaneously suggesting a cooling-off in the perpetual markets from their previously overheated state.

Consequently, there is potential for the price to resume its upward trajectory once the ongoing correction phase concludes.

eth_open_interest_chart_2501241 — Source: CryptoQuant

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

Ethereum

Ethereum Foundation Sets Up Multisig Wallet for Defi Participation

The Ethereum Foundation has announced the creation of a new multi-signature wallet using the Safenet platform to enhance its treasury operations and facilitate participation in the decentralized finance (defi) ecosystem. Ethereum Foundation Begins Transition to Safe Multisig Wallet The wallet, which operates on a 3-of-5 multisig structure…
Read More

Ethereum

Ethereum Price Analysis: This Support Is Crucial for Ethereum to Reach $4K

Ethereum is grappling with a decisive support range between the 100-day MA ($3.2K) and the 200-day MA ($3K), a critical region serving as the buyers’ last line of defense.

The outcome at this level is expected to shape Ethereum’s mid-term trajectory.

Technical Analysis

By Shayan

The Daily Chart

ETH recently encountered heightened volatility as it approached the significant $3.2K-$3K price range, reflecting an intense battle between buyers and sellers. The price action highlights sellers’ attempts to push the asset below these key moving averages, signaling a potential bearish breakdown.

Currently, Ethereum is finding temporary support within this range, with the price confined between the $3.2K level and the bullish flag’s upper boundary. A decisive breakout in either direction is likely to determine the next major trend for Ethereum.

The 4-Hour Chart

On the 4-hour chart, Ethereum consolidated near the 0.5 ($3.2K) and 0.618 ($3K) Fibonacci retracement levels before briefly breaking below this critical support zone. However, strong buying interest quickly drove the asset back above the $3.2K mark.

This region remains pivotal as it represents the final primary support zone for buyers. A sustained hold above the $3.2K level could reignite bullish momentum, targeting a recovery toward higher resistance lines.

Conversely, a breakdown below this range could trigger liquidations, potentially driving the price toward the $2.5K support zone. For now, Ethereum is consolidating near this critical region, with a battle between buyers and sellers dictating the market’s next move.

Onchain Analysis

By Shayan

The Binance liquidation heatmap provides insights into key levels where significant liquidation events are likely. Based on the clustering of liquidation levels for long and short positions, these levels often act as magnets, driving price action toward them as market participants aim to capture liquidity.

During the recent shake-off, Ethereum grabbed liquidity at the $3K mark, resulting in a sharp price recovery. A notable cluster of wrecked levels still exists just below the critical $3K support, representing long-position liquidations. This makes the $3K area highly attractive to bears and institutional sellers, increasing the probability of a bearish breakout toward these levels in the mid-term.

However, a significant liquidity pool also rests at the $4K threshold, marking a potential ultimate target for buyers. However, it is likely that the price may grab liquidity below $3K first, creating a shakeout phase before resuming a bullish trajectory toward $4K. While Ethereum’s current price action reflects consolidation, the $3K level remains pivotal. A bearish breakout to capture liquidity below $3K is plausible in the short-to-mid term.

SPECIAL OFFER (Sponsored)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Cryptocurrency charts by TradingView.

Ethereum

Ethereum Slips Further Behind as Competitors Steal the Spotlight

As the global cryptocurrency market capitalization expands to $3.59 trillion, the second-largest digital asset, ethereum (ETH), has struggled to keep pace with its peers. Over the past six months, its performance has lagged significantly, falling short of the momentum seen elsewhere in the sector. Stagnation Strikes Ethereum as Its Competitors Surge Ahead Lately…
Read More