Ethereum’s price has been trapped in a tight range recently, showing little intent to move significantly to either side. However, changes could be expected shortly.
On the daily timeframe, the price has been oscillating between the 50-day moving average located around the $1900 mark and the $1800 static support level, during the past 7 days.
From a classical PA point of view, the market is likely to reach lower levels, as it has made a lower high and a lower low recently. In this case, $1800 could break, and ETH could test the critical 200-day moving average, which is trending around the $1600 level.
On the other hand, if ETH climbs above the 50-day moving average, it would likely rally higher and eventually test the $2200 resistance area in the short term.
Looking at the 4-hour chart, it is evident that the price has formed a large falling wedge pattern below the $2000 mark. A breakout above this pattern would be a classical continuation pattern, which would probably result in a run toward the $2200 resistance zone.
Even so, the price still has a long way to reach the higher boundary of the pattern, as it is currently testing the $1800 support area. The RSI indicator also provides minimal insight, as it has been running relatively flat around the 50% mark, pointing to an equilibrium in momentum.
Ethereum’s price was rejected below the $2,000 mark over the last few weeks and has been consolidating ever since. The indecisiveness on the chart can also be witnessed by evaluating the futures market sentiment.
This chart demonstrates the funding rates metric, which indicates whether the futures market sentiment is relatively bullish or bearish. Positive values are associated with bullish market sentiment, while negative ones show bearish sentiment.
It is clear that following a period of consistently positive funding rates during the price rally since early 2023, this metric has been showing small positive and negative values with no particular consistency.
It could be interpreted that neither the bulls nor the bears have established their dominance in the futures market, and the price could still move rangebound until things change in the derivatives.
The post ETH Flatlines at $1.8K, What’s Next? (Ethereum Price Analysis) appeared first on CryptoPotato.
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]