After suffering a drop of almost -10%, Ethereum performed more than 5% at the start of the week. Let’s see the future prospects for ETH.
ETH Status
The latest variations of Ethereum are similar to those of bitcoin. Indeed, since the last drop in the crypto market, ETH has stabilized around $1,650. During our last Ethereum analysis, published on August 17, 2023, we did not fail to emphasize the importance of this level. Currently, the ETH price is trading around $1700. The 61.8% Fibonacci retracement zone (drawn from the last bearish impulse) has not been crossed. This is not meant to be reassuring. Ethereum now forms a double top figure preventing, in theory, a bearish movement. It is currently below the 50 and 200 moving average in the daily period. Be careful, the latter change course dangerously to the point of forming a Death Cross.
The bullish engulfment of this Tuesday or the oscillators suggesting the resumption of bullish momentum may be more comforting factors.
The current technical analysis was carried out in collaboration with Elie FT, passionate investor and trader in the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual aid around the financial markets in a professional and warm atmosphere.
Focus on derivatives
According to several data platforms, more than $20 million in short positions have been liquidated. This scenario did not negatively impact open interest. Indeed, the open interest of Ethereum on CryptoQuant shows an increase of more than 200 million dollars.
In view of the latest movements, a major part of this liquidity is in the Bulls’ camp.
However, be careful, we can see that the day of August 30 caused a slight decline in the indicator. This can be explained by small forced liquidations and may suggest potential profit taking or abandonment of positions in an uncertain market context.
Hypotheses for the price of Ethereum
To have a better bullish outlook on the price of ETH, we should consider returning above $1,800. In this scenario, we could envisage a return towards $1,900, then towards $2,000.
If the price of Ethereum fails to rebound from the $1,650 support, we could envisage that the latter will test $1,500. Unfortunately, if this level does not hold, it could drag it towards the next support around $1,430.
Ethereum price is just above a fundamentally important level. This is why he has every interest in getting back on track. Despite promising momentum, nothing is yet decided. Thus, it will be important to carefully observe the price reaction on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake outs” and “market squeezes” in each situation. In addition, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies can change more or less quickly, depending on other more fundamental factors.
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