After a strong correction, Ethereum stabilized while awaiting a further rise. Let's take a look at the future prospects for ETH.
Ethereum (ETH) price situation
After suffering a drop of almost 40% from $3,600, Ethereum attracted renewed buying interest which allowed it to bounce back from the support identified around $2,100. This buying interest led the ETH price to climb back up to $2,800. Unfortunately, this increase was quickly caught up. Ethereum thus returned to its support, which, once again, showed some interest from buyers. However, it is worth noting that this interest appears to have slowed down from the $2,700 level.
Indeed, at the time of writing this text, the price of Ethereum is trading around $2,400. Currently, the crypto seems to be recovering with difficulty after the last drop in its price. It is interesting to note that Ethereum is positioned between two zones of significant value, and crossing these latter would be seen as positive for a bullish continuation. Concerning the medium-term trend, it remains uncertain. Indeed, the price of Ethereum is still below its 50 and 200 day moving averages, both of which are trending downward. On the dynamic side, we can observe a slight recovery, as shown by both the price of ETH and its oscillators, suggesting a bullish divergence.
A bullish divergence in trading occurs when the price is falling while a technical indicator, such as the RSI, is showing a rise, signaling weakening selling pressure and a possible bullish reversal.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (ETHUSDT)
The open interest of Ethereum perpetual contracts has generally followed the trajectory of its underlying, which demonstrates a relatively healthy market with speculator interest mainly oriented towards buying. The CVD shows that Ethereum mainly generated short positions before stabilizing at the start of the month. As for liquidations, we observe that they are mainly on the buyers' side, which suggests a capitulation of the latter. Regarding funding rates, they are positive, still signaling a majority of buyers on Ethereum perpetual contracts.
After reaching the liquidation zone around $2,700, Ethereum saw selling interest. It then bounced back to the subtle zone identified above $2,300. Currently, the liquidation zones closest to the price are below it. We can first note the $2,400, then further down, the area around $2,250. Above the current Ethereum price, we can note the $2,700 zone, extending to $2,850. Higher up, it is possible to spot the subtle $3,000 and $3,200 area, but it is the area between $3,400 and $3,600 that is clearest. The price approaching these levels could result in a massive triggering of orders, increasing the risk of a period of heightened volatility for the crypto. These areas therefore represent crucial points of interest for investors.
Ethereum (ETH) price forecast
- If the price of Ethereum remains above the $2,250 – $2,300 zone, we could anticipate a bullish continuation, with a recovery target around $2,700. The next resistance to watch would be around $2,800. If this bullish movement continues, it could open the door to $3,000 or even $3,400. This would represent an increase of close to 40%.
- If Ethereum fails to stay above $2,250 – $2,300, a return towards $2,100 would be possible. The next key support, if the bearish movement continues, would be around $2,000, with a risk of a descent towards $1,900. This would represent a drop of close to 21%.
Conclusion
Ethereum is showing signs of recovery after a significant decline, but the trend remains uncertain. Although it has rebounded from a key level and appears ready to break through others, the upward momentum remains limited, requiring increased vigilance. It will therefore be essential to carefully monitor the price reaction at key levels to validate or revise current forecasts. Finally, remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can evolve quickly depending on other more fundamental factors.
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