Ethereum's recent rejection at the critical resistance of the 100-day MA level suggests potential short-term correction. However, a breakup above this level could see price surge toward $3K.
Technical Analysis
Recently, Ethereum saw a notable increase in demand and bullish momentum, testing and slightly breaching the decisive resistance region formed by the 100-day moving average at $2.7K and the inverted head and shoulders neckline at $2.6K. Despite this brief breach, ETH quickly faced rejection due to significant supply at this level, causing the price to plummet below the 100-day MA.
The 4-Hour Chart
On the 4-hour chart, Ethereum surged toward the critical resistance zone bounded by the 0.5 ($2.6K) and 0.618 ($2.7K) Fibonacci retracement levels, representing a significant barrier for buyers. A breakout above this range could lead to massive short liquidations and further price rally. However, recent price action indicates intense selling pressure near this area, resulting in a rejection and halt in bullish momentum.
Onchain Analysis
The Estimated Leverage Ratio is an essential metric for gauging the risk participants in the futures market are willing to take by using leverage. A rising ELR typically signals an increase in leveraged positions, which can amplify market moves in either direction.
Ethereum's current market situation presents short-term risks and opportunities tied to the dynamics at $2.4K and $2.7K levels. Investors should watch these levels closely to assess potential price movements.