As a seasoned researcher with extensive experience in analyzing cryptocurrency markets, I have closely observed Ethereum’s recent price action and am confident in sharing my perspective based on technical and sentiment analysis.
As a researcher observing the Ethereum market, I’ve noticed an increase in demand around a vital support level, resulting in a substantial bounce back above the 200-day moving average at $3,134 and approaching the 100-day moving average.
The current price trend indicates a possible bullish turnaround if the price surpasses the $3,342 mark represented by the 100-day moving average.
Technical Analysis
By Shayan
The Daily Chart
An in-depth examination of Ethereum’s daily price chart indicates that following a lengthy downtrend, the cryptocurrency momentarily dipped below its crucial 200-day moving average at $3,081. This unexpected drop sparked concern and apprehension among investors, as this key support level plays a significant role in determining Ethereum’s price trajectory.
Ethereum encountered significant resistance at the robust support level of $3,000, leading to a substantial bounce back in its price. The currency has now moved above its 200-day moving average and is advancing towards its 100-day moving average, suggesting a possible trap for bears who had bet on further declines or a false breakout of the resistance level.
At present, ETH is approaching its 100-day moving average of $3,142 and is on the brink of retaking it. This moving average coincides with the strategic resistance level of $3,300, acting as a strong hindrance for potential buyers. However, if ETH manages to hold above its 100-day moving average, this could indicate a bullish resurgence in the medium term, potentially leading to a challenge of the $4,000 annual peak.
The 4-Hour Chart
On the 4-hour Ethereum chart, there was a rejection of the price at around $3,500, which is a multi-month downtrend line. Following this, Ethereum entered a significant and forceful bearish phase. However, when it reached the important support area at approximately $2,800, the bearish pressure began to dissipate, leading to the development of a distinct double-bottom pattern.
After the merge, heightened purchasing resulted in a robust market recovery, surpassing the resistance line (neckline) and culminating in a profitable correction to the previous breach.
Afterward, the cost unexpectedly spiked up, indicating a potential shift in market attitude towards optimism. Ethereum currently hovers around a pivotal barrier, consisting of the psychologically significant $3.4K price point and the extended trendline from several months, where selling forces could intensify.
Should Ethereum regain this resistance point, the bullish momentum might push the price further up to reach around $3.7K. On the other hand, if Ethereum fails to break past this resistance, it could signal a resumption of the bearish trend, potentially leading the price down to hit the crucial support at $2.8K.
Sentiment Analysis
By Shayan
Recently, Ethereum has seen a strong resurgence, making notable gains and approaching the important price barrier at $3,500. Determining potential goals for this uptrend is crucial in anticipating further price fluctuations.
Based on my extensive experience as a seasoned trader and analyst in the cryptocurrency market, I believe that the chart accompanying this text provides valuable insights for mid-term Ethereum trading strategies. After the recent bearish trend pushed the price below the $3K threshold, the price dipped into the liquidity pool beneath it. This pool is predominantly made up of sell-side liquidity from long positions opened near that mark. My personal experience has taught me that understanding these potential liquidation zones can help traders make informed decisions and mitigate risks in volatile markets like Ethereum.
Moving forward, there is a noticeable buildup of liquidity around the $4K resistance mark, primarily comprised of buy orders set in place by aggressive short sellers during the previous strong bearish phase. In the longer term, it’s likely that Ethereum’s price will continue to rise, allowing traders to capitalize on this liquidity pool situated near and above the $4K threshold. This strategy intends to tactically utilize these liquidity pockets, which could further fuel Ethereum’s price increase.
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2024-07-15 16:59