As a seasoned analyst with extensive experience in the cryptocurrency market, I’ve closely monitored the recent price action of Ethereum (ETH). The rejection from the $4,000 resistance level has led to an intensified selling pressure, with bears targeting the crucial support level at $3,000.
As a crypto investor, I’ve noticed that Ethereum‘s price has been on a downward trend since it failed to break through the $4,000 resistance. In the last 24 hours, the selling pressure has escalated, and it seems the bears are gunning for the significant resistance at $3,000.
Technical Analysis
By TradingRage
The Daily Chart
The daily graph indicates that the price has dipped beneath the $3,600 threshold and is swiftly approaching the significant support area around $3,000. Notably, the 200-day moving average lies in close proximity to this support zone, magnifying its importance.
As a crypto investor, I’m closely monitoring the Relative Strength Index (RSI) of Ethereum (ETH). Currently, it has dipped below the 50% mark, suggesting that the momentum in the market has turned bearish. If the $3,000 resistance level gives way, ETH could be in for a rough ride. In such a scenario, we might see further declines towards the $2,800 and even the $2,200 support levels.
The 4-Hour Chart
On the 4-hour chart, the price has been forming successively lower peaks and troughs since it was rejected at the $4,000 resistance mark.
As a researcher studying cryptocurrencies, I’ve noticed that the current trend is bringing us closer to a significant long-term bullish trendline. Should we witness a downward break of this line, it’s likely that a bearish phase will unfold over the next few weeks.
Despite the RSI dipping below 30 on Ethereum’s 4-hour chart, indicating oversold conditions, there’s a chance for a recovery. A potential bounce back from the trendline or the $3,000 support level remains plausible.
Sentiment Analysis
By TradingRage
Funding Rates
As a researcher studying the cryptocurrency market, I’ve noticed that the Ethereum price has been on a downtrend since it failed to surpass the $4,000 mark and reach new heights close to its all-time high. Meanwhile, the sentiment in the Ethereum futures market is turning bearish.
As a crypto investor, I’d explain it this way: This chart illustrates Ethereum’s funding rate metric, which reveals the intensity of market participants’ orders. Positive funding rates signify that buyers are more actively placing orders, reflecting a bullish outlook. Conversely, negative funding rates imply that sellers are dominating the market with their orders, suggesting bearish sentiment.
At present, the funding rates are decreasing in tandem with the falling prices. Although this indicates a changing investor sentiment, it may not necessarily be detrimental to the price. This could be due to the likelihood or the potential severity of a large-scale liquidation wave as the futures market experiences a cooling off period.
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2024-06-24 15:08