After bottoming out at $3,050, Ethereum recorded a 20% rise. Let's take a look at the future prospects for ETH.
Status of Ethereum (ETH)
After reaching $3,050, the Ethereum price attracted buying interest, propelling it to $3,600. This interest was sustained a second time, at $3,300 as support, which allowed it to subsequently join the resistance at $3,680. At the time of writing, one ether is worth $3,545. So, it appears that Ethereum is struggling to break through this final resistance. Naturally, this can reinforce the selling conviction. However, Ethereum's short-term structure still suggests a wave of upside to come.
Ethereum has therefore bounced off its 50-day moving average and is starting to move away from it. This theoretically suggests a continuation of the current trend. As for the dynamics of the cryptocurrency, it has rebounded slightly as illustrated by the oscillators as well as the price of Ethereum itself.
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 contracts has followed its price direction, which is rising. The latter has increased by 16% since Ethereum's rebound to $3,300. This increase was accompanied by very slight liquidations, mainly sales, as well as a subtle increase in the financing rate. This indicates that investor interest in ETH/USDT perpetual contracts is primarily oriented toward buying.
The ETH/USDT one-month liquidation heatmap reveals that the liquidation zone around $3,100 has generated buying interest in the cryptocurrency. However, the fresh liquidation zone just below $3,700 has visibly triggered slight selling interest. Today, the most significant liquidation zones are above $3,700, then higher, around $4,100. Below the current price, we can still note the $3,000 zone. Price approaching these levels could result in a massive triggering of orders, increasing the risk of a period of heightened volatility for Ethereum. These areas therefore represent a crucial point of interest for investors.
Hypotheses for the price of Ethereum (ETH)
- If the price of Ethereum remains above $3,300, we could anticipate a bullish continuation up to the $3,900 level. The next resistance to consider, if the upward movement continues, would be $4,100. At this stage, this would represent an increase of more than +15%.
- If the Ethereum price fails to stay above $3,300, we could envisage a return to $3,000. The next support to take into account, if the bearish movement continues, would be around $2,900. At this point, that would represent a drop close to -18%.
Conclusion
Despite initial selling pressure, Ethereum is showing signs of bullish recovery. As positive as this may seem, it is important to note that the direction of the market is still struggling to define itself. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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