While Ethereum is in a period of consolidation, Bitcoin's ATH is causing a buying rebound on the crypto. Let's take a look at the future prospects for ETH together.
Ethereum (ETH) price situation
After suffering a drop of almost 40% from $3,600, Ethereum attracted renewed buying interest, subsequently allowing it to begin consolidation in the form of an ascending triangle. Thus, the ETH price formed higher and higher highs and established a resistance zone around $2,800. Recently, ETH price bounced off the $2,400 support. This latest rebound formed a double bottom, a chart pattern suggesting continued bullish momentum.
At the time of writing, Ethereum is trading around $2,600. The cryptocurrency is stabilizing at this price level, located just below a significant value zone. Ethereum thus crossed its monthly pivot point as well as its 50-day moving average. While this may be viewed positively, it should be noted that the medium-term trend of the cryptocurrency remains bearish. In terms of Ethereum's bullish momentum, we observe a slight recovery, as shown by both the price of ETH and its oscillators.
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 Trhasdinga 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 followed the trajectory of its underlying, which demonstrates a relatively healthy market, with speculator interest mainly oriented towards buying. These observations are supported by a positive funding rate. However, on the CVD side, we observe that it has diverged from these latter indicators, showing persistent selling interest on orders placed at the market. Regarding liquidations, a recent spike in seller liquidations suggests a possible capitulation of selling force to the benefit of buyers.
Based on the heat map of liquidations on ETH/USDT contracts, a notable area of interest has emerged above $2,400. This seems to have sparked subtle buying interest, with the Ethereum price remaining at this level. Now, the important liquidation zones are located on either side of the current Ethereum price: above, we can note the zone of $2,800, and below, those of $2,300 and 2,250 $. 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 $2,400 zone, a bullish continuation could be anticipated, with a recovery target around $2,720 and the next resistance to watch around $2,800. If this upward movement continues, a potential crossing of $3,000 could be considered, representing an increase of around 15%.
- If Ethereum fails to stay above $2,400, a pullback towards $2,300, or even $2,250, could be considered. The next key support, should the bearish movement continue, would be around $2,100, implying a decline of around 30%.
Conclusion
Ethereum is showing signs of recovery with an encouraging consolidation, marked by a stabilization of its price and a renewed buying interest. Although resistance remains present, the latest technical formations suggest a potential for continued bullishness, despite a still cautious underlying trend. Thus, it will be essential to carefully monitor the price reaction at key levels in order 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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