ETH Remains Relatively Stable at $3.5K, But Bones Target $3000 Next (Ethereum Price Analysis)

Ethereum price has failed to break the $4,000 resistance level once again and has yet to create a new all-time high.

However, the market is showing resilience compared to other currencies during the current correction phase.

Technical Analysis

By TradingRage

The daily chart

As the daily period shows, the price of ETH has dropped back to $3,500 after being rejected from the $4,000 resistance level once again. Currently, the $3,500 mark is holding and preventing the price from falling towards $3,000.

However, if the $3,500 level is broken to the downside, the market will likely move quickly towards the $3,000 support zone and the nearby 200-day moving average.

These concurring elements would make the $3,500 level key, and the price reaction will likely decide how the market moves in the coming months.

Source: TradingView The 4-hour chart

The price has been around the $3,500 level in the 4-hour period. A classic chart pattern has also been forming around this area, which price has been unable to break on either side.

Therefore, the direction of the next move depends on the direction of the possible breakout of this pattern.

The RSI is also hovering around 50%, so not much can be gleaned from it as it shows that the momentum is roughly in balance.

Source: TradingView Sentiment Analysis

By TradingRage

Open interest

This chart shows Ethereum open interest on all exchanges, which is the value of all futures contracts. High values ​​usually lead to volatility due to potential liquidation cascades.

As the price of ETH has recovered from the $3000 support level, interest in the Open has increased massively from around 7 billion to almost 13 billion.

This increase likely led to the recent recovery as some of these overleveraged positions have been liquidated and put selling pressure on the market. Meanwhile, further downside is possible as open interest is still much higher than in March when ETH was trading around the same prices.

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