Ethereum reached the $4,000 resistance before triggering a selling move. Let’s look at the future outlook for ETH.
Ethereum (ETH) price situation
Ethereum recorded an increase of more than 47% this month of November. Indeed, ETH has experienced real expansion since the $2,400 support. The latter allowed it to reach, then cross, the resistance of $3,560. After a short period of consolidation around $3,500, ETH finally continued its rise to reach its latest high, identified at $4,000. The bullish hypothesis presented in the analysis of November 20 thus materialized. Unfortunately, the overall decline in the crypto market caused Ethereum to retreat back to its former range, demonstrating the importance of this level as support.
At the time of writing, Ethereum is trading around $3,700. Cryptocurrency thus seems to subtly regain interest. Concerning the trend of Ethereum, it appears clearly bullish in the short, medium and long term. These claims can be supported by ETH's positioning above its annual VWAP as well as its 50 and 200 day moving averages, which are now clearly trending higher. Naturally, Ethereum's bullish momentum has seen a notable acceleration. However, the latest fluctuations have revealed a certain weakening of this trend.
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)
Open interest in ETH/USDT perpetual contracts moved in line with the price of its underlying, reflecting a lack of new capital inflows and a notable closing of speculative positions. On the CVD side, it continues to fall, suggesting selling interest on the latest orders placed on the market. Concerning the financing rate, we observe that the size of buying positions remains greater than that of selling positions. However, the indicator is showing signs of slowing down. Finally, regarding liquidations, the previous session saw significant liquidations of long positions, reflecting a recent capitulation of buyers.
The ETH/USDT heat map shows that Ethereum has reached a significant liquidation zone just below $4,000. Unfortunately, Ethereum's reaction suggests that reaching this level has sparked selling interest. In fact, the cryptocurrency has suffered a drop of almost 15% since this resistance. Now, the notable liquidation zones are on either side of its current price. Above, we can note the area around $4,150. Below that, a wide zone extends between $3,500 and $3,200. Lower still, the $3,000 zone is widely visible, demonstrating its importance as a key level. The price approaching these levels could result in a massive triggering of orders, increasing the risk of a period of heightened volatility for the cryptocurrency. These areas therefore constitute crucial points of interest for investors.
Ethereum (ETH) price forecast
- If Ethereum price maintains above the $3,500 zone, a bullish continuation could be anticipated, with a recovery target around $4,100 to $4,200. The next important resistance should be watched around $4,650. If this upward movement continues, reaching $5,000 could be considered, which would represent an increase of around 33%.
- If Ethereum fails to hold above $3,500, a pullback towards $3,250 could be on the cards. The next key support, in case the bearish movement continues, is around $3,000. Even lower, we can note the level of $2,400, which would imply a drop of around 35%.
Conclusion
Ethereum confirms its potential by consolidating an upward trend supported by solid technical indicators. Although its recent momentum has been slightly weakened by market fluctuations, cryptocurrency continues to attract growing interest, proof of its resilience and ability to progress. It will therefore be essential to carefully monitor the price reaction at key levels to validate or adjust 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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