As a seasoned researcher with a knack for deciphering market trends and a penchant for navigating the complex world of digital currencies, I’ve grown to appreciate the intricacies of Ethereum’s price movements. The recent rebound at the $3.5K support level is a testament to its resilience and the unwavering faith investors have in this promising platform.
The cost of Ethereum appears robust, bouncing back slightly after testing its $3,500 support point. Although it’s expected to attempt breaking through the $4,000 resistance, periodic pauses in price action may occur within the $3,500 to $4,000 band as the market processes recent increases.
Ethereum Price Analysis
By Shayan
The Daily Chart
The rise in Ethereum’s price appears to have slowed down following its remarkable jump past the $3.5K barrier, which represented a key resistance level. This breakthrough was a notable achievement, but the subsequent decline in bullish energy has led to a phase of consolidation, causing the price to revert back to $3.5K.
Following the pullback, there’s been increased buying activity, causing a minor recovery that suggests the market is aiming to continue its uptrend.
Yet, the bearish divergence in the Relative Strength Index (RSI) suggests that Ethereum’s bullish momentum might be weakening. This could mean that Ethereum may enter a mid-term correction phase where it consolidates before continuing its upward trend. As the price moves closer to the $4K psychological resistance, periods of lower volatility and potential pullbacks are likely to occur.
The 4-Hour Chart
Over a span of four hours, I’ve observed a notable surge in Ethereum’s bullish momentum. The cryptocurrency has successfully breached an ascending wedge formation and overcome the significant resistance at approximately $3.5K, suggesting a strong upward trend.
The temporary drop in price and its subsequent recovery suggests that the upward trend is likely to continue, aiming for $4K in the near future.
On the other hand, a bearish divergence appearing between the price and the RSI (Relative Strength Index) on the 4-hour chart seems to indicate escalating selling pressure and decreasing bullish energy.
In this situation, it seems we’re looking at a trend where the price could approach around $4,000. However, there might be times when the price movement slows down or corrects slightly within the range of $3,500 to $4,000. These fluctuations would give the market a chance to stabilize before another strong surge happens.
Onchain Analysis
By Shayan
The cost of Ethereum has bounced back from the significant $3,500 support point, continuing its positive trend. But even though the price movements suggest a possible rise, the data from the futures market shows a concerning split that may have a substantial impact on market behavior.
The measure known as open interest, which tallies the overall count of ongoing contracts for continuous Ethereum futures on all trading platforms, has hit a record peak. This surge indicates exceptionally high levels of speculation in the Ethereum derivatives market that haven’t been seen before.
It’s worth noting that despite the increase in open interest, Ethereum’s price hasn’t reached a new record high yet.
This gap suggests worries about heightened market turbulence and potential massive sell-offs. Should the price experience an unexpected drop or stabilization, heavily leveraged investments in the Futures sector might spark a chain reaction of compulsory sales, resulting in swift price drops.
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2024-12-01 14:22