Ethereum’s price has been consolidating after a significant crash a few weeks ago, making market participants hopeful that the price is creating a bottom.
Technical Analysis
Ethereum has been consolidating its position after a relatively recent significant drop. Market participants hope that this might indicate a potential bottom and possible price appreciation in the future.
Daily Chart Analysis
On the daily chart, the price has gradually made higher highs and lows since rebounding from the $2,100 support level. Yet, the market is yet to break past the $2,700 resistance, while a rejection could lead to another drop to $2,100. On the other hand, if the market successfully breaks through this resistance, a rise toward $3,000 would be imminent in the short term.
4-Hour Chart and Sentiment Analysis
The 4-hour chart clarifies the recent price action, as the market has been moving inside a rising wedge pattern. These are primarily bearish. A breakout below the wedge could continue toward the $2,100 level and even lower. However, if the market somehow breaks the pattern to the upside, a quick surge toward the $3,000 resistance zone and even higher could be expected. Sentiment analysis shows that many investors believe the bull run is over, especially in the perpetual futures market. Despite the significant drop in Open Interest (OI) during the recent price drop, this can be a good sign, as the price will be less volatile and more driven by the spot market. Therefore, with sufficient demand in the spot market, Ethereum could begin a sustainable rally soon.
Ethereum’s price continues to consolidate, leading to potential increase or decrease. Technical and sentiment indicators show key levels and patterns to watch in the near future.
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