As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market cycles – from the dot-com bubble to the 2008 global financial crisis and beyond. The current state of Ethereum’s price action is reminiscent of those tumultuous times, yet it also presents a unique opportunity for investors who are patient and well-informed.


After a major drop a while back, Ethereum‘s cost seems to be stabilizing, giving investors optimism that it might be reaching its lowest point.

Technical Analysis

By: Edris Derakhshi

The Daily Chart

As I analyze the daily price movement, it appears that the trend has been consistently ascending since bouncing back from the $2,100 support level. However, the market hasn’t managed to surpass the $2,700 resistance yet. A potential rejection at this level could trigger another decline, possibly leading us back to the $2,100 mark.

If the market manages to surpass this resistance level, it’s likely we’ll see an immediate increase towards $3,000 in the near future.

The 4-Hour Chart

On the 4-hour scale, we can see that the market’s recent movements follow a developing rising wedge shape, providing insight into its behavior.

This trend is mostly bearish. Dropping below the wedge might extend down to around the $2,100 level or possibly lower. But if the market manages an unexpected break above this pattern, a swift rise toward the $3,000 resistance area and potentially higher could occur.

Ethereum Price Analysis: ETH Bulls Eye $2.8K but Worrying Signs Appear

Sentiment Analysis

By Edris Derakhshi

Ethereum Open Interest

Recently, Ethereum’s price drop has caused some investors to reconsider their expectations for its future trajectory, with a growing belief that the bull market may have concluded. This shift in opinion is noticeable in the sentiment of the perpetual futures market.

This chart presents the Ethereum Open Interest (OI), which measures the number of open perpetual futures positions across all derivatives exchanges. High OI values usually hint at bullish sentiment among futures traders and vice versa.

According to the graph’s depiction, the Open Interest has noticeably decreased during the recent steep price decline and hasn’t bounced back yet. This could be a positive indicator because the price will likely become less erratic and more influenced by real-time market activities. Consequently, with an adequate demand in the spot market, Ethereum may soon initiate a steady upward trend.

Ethereum Price Analysis: ETH Bulls Eye $2.8K but Worrying Signs Appear

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2024-08-26 17:40