The Ethereum price performed more than 18%. Let’s see the future prospects for ETH.
Status of Ethereum (ETH)
The price of Ethereum did not escape the rise in the crypto market and reached $1,850. This last level constituted a resistance that we did not fail to highlight during our bullish hypothesis in the analysis of October 18. This latest impulse counters the downward trend that Ethereum has formed over the last three months. Now, ETH is trading around $1780. This rebound confirms the formation of an ascending triangle, which indicates the upward pressure that Ethereum has endured since the start of the year. From a chartist perspective, we can see that ETH also forms a double bottom, an encouraging figure for a bullish scenario. Ethereum is now above the 50-day moving average, but is still struggling to cross the 200-day mark. On the oscillator side, we can see that they demonstrate bullish dynamics. However, the RSI is in the overbought zone. Thus, this may suggest that Ethereum is likely to undergo a downward correction or consolidation in the near term.
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)
Recent Ethereum price fluctuations demonstrate a small reduction in open interest. According to the VeloData analysis platform, the latter fell by -10% (Binance). This situation demonstrates that there has been a decline in trader engagement. On the liquidation side, we can see that there was a first wave of short liquidation followed by a second wave of long liquidation. Each of them is valued at nearly $11 million (Binance). The latest liquidations being mainly buyers, are intended to be encouraging for the bearish scenario, in the short term.
When viewing the Ethereum Liquidation Heat Map, we can see that the price of the cryptocurrency is just below a high liquidity zone. These are around $1,900. As the market approaches this level, it could trigger a large number of orders, which, naturally, can increase the volatility of ETH.
Hypotheses for the price of Ethereum (ETH)
If the price of Ethereum remains above $1,750, we could anticipate a bullish continuation to the level of $1,850 – 1,900. The next resistance to consider, if the bullish movement continues, would be the $2,000 threshold. At this stage, this would represent an increase close to +12%.
If the price of Ethereum fails to hold above $1,750, we could envisage a return to $1,650. The next support to take into account, if the bearish movement continues, would be around $1,530. At this point, that would represent a drop close to -14%.
Conclusion
Influenced by the rise in Bitcoin, Ethereum was able to perform by rebounding from its technical support. ETH’s short-term structure looks set to change. However, it may be too early to make these statements. Therefore, it is crucial to carefully monitor the price reaction at different key levels to confirm or refute the current hypotheses. Beware of potential “fake out” and “market squeeze” in each situation. Additionally, let’s not forget that these scenarios are based solely on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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