Is ETH about to fall below $3000 or will the bulls come in? (Ethereum Price Analysis)

After a period of consolidation near the critical support marks defined by the 0.5 and 0.618 Fibonacci retracement levels, along with the 100-day MA, Ethereum witnessed a modest bullish rally.

However, it is still struggling with a notable resistance range, the break of which has the potential for further bullish momentum.

By Shayan

The daily chart

Examining the daily chart, it becomes clear that Ethereum’s extended consolidation phase is near fundamental support levels.

These points, marked by Fibonacci retracement levels of 0.5 ($3139) and 0.618 ($2910), along with the crucial 100-day MA, culminated in a slight bullish recovery. This consolidation also coincided with the lower boundary of the multi-month descending wedge pattern, which usually indicates a bullish continuation.

However, Ethereum now faces a formidable resistance zone that includes the upper boundary of the wedge and the critical $3.4 thousand mark. A successful breach of this resistance could pave the way for a significant upside move towards the $4.1k threshold.

Conversely, failure to overcome the selling pressure may result in the continuation of the consolidation phase within the upper boundary of the wedge pattern and the 100-day MA.

Source: TradingView The 4-hour chart

Analysis of the 4-hour chart reveals Ethereum’s sideways movement near the lower boundary of the wedge pattern, corresponding to the $3K support region.

During this phase, Ethereum formed an inverted head and shoulders pattern, suggesting a possible bullish reversal. However, the price rose above the neckline of the pattern at $3.3 thousand, but was later rejected, indicating a false breakout.

Given the recent price action and prevailing market sentiment, Ethereum looks poised to continue its consolidation within the price range bounded by the $3.4K resistance region and the $3K support. A successful breach of this decisive range could herald a new medium-term price trend.

Source: TradingView

By Shayan

After Ethereum’s recent rejection of the $3.3 thousand rally, investors can turn their attention to the behavior of traders in the futures market. The provided chart illustrates the Binance ETH/USDT liquidation heat map, showing price levels with significant liquidity capable of influencing the price trend.

Clearly, the steep drop below the critical $3,000 level resulted in the liquidation of a substantial number of long positions, triggering a cascade of sell stop orders. However, since then, the price has suffered corrective pullbacks, causing the futures market to cool in recent weeks.

Accordingly, there are currently no notable levels of liquidity heading Ethereum’s way in either short-term direction. As a result, the market looks poised for a renewed bullish move driven by futures market sentiment.

Barring any unexpected developments in the short term and considering the increased demand for Ethereum, the price may set its sights on liquidity above the $4K level in the long term.

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