As a seasoned crypto investor with over a decade of market experience under my belt, I’ve seen my fair share of bull runs and bear markets. The recent rejection of Ethereum at the $2.8K threshold and subsequent pullback to the wedge’s broken lower boundary is reminiscent of a familiar dance we’ve all grown accustomed to in this wild world of crypto.
Ethereum faced strong resistance near the $2,800 level, causing it to retreat back down to the lower edge of its descending channel.
The current price fluctuations indicate a pessimistic outlook and hint at the possibility of the decline persisting, potentially reaching the $2.1K area where it might find support.
Technical Analysis
By Shayan
The Daily Chart
For quite some time, Ethereum was facing challenges close to the bottom of a long-term triangle at around $2,800. However, a substantial wave of sellers caused it to experience a notable reversal, or rejection, in its movement.
Based on our previous predictions, as expected, ETH underwent a successful retreat to the previously breached level, leading to a significant drop. The strong resistance to buying around the $2.8K area implies that this rejection could potentially drive the price towards the crucial $2.1K support zone.
Moreover, the 100-day moving average recently crossed below the 200-day moving average at $3.2K, forming a “death cross.” This bearish signal reinforces the expectation of continued downward movement toward the crucial $2.1K support zone in the short term.
The 4-Hour Chart
On a 4-hour timeframe, Ethereum failed to surpass the significant resistance area formed by the 0.5 Fibonacci level ($2,600) and the 0.618 Fibonacci level ($2,800). This failure has caused increased selling activity.
This led to a substantial drop at the $2,800 mark, causing a noticeable downward movement. Furthermore, ETH fell below the lower boundary of the ascending wedge on the 4-hour chart, a pattern that often indicates the continuation of the trend. As such, it’s predicted that the asset will continue to fall in the immediate future, with sellers aiming for the crucial $2,100 support level.
On-Chain Analysis
By Shayan
The futures market has played a significant role in Ethereum’s recent price movements, with the past few weeks highlighting this influence. Analyzing futures market sentiment offers valuable insights into potential price trends.
This graph illustrates the Ethereum Funding Rate, a measure that determines if traders are predominantly buying or selling aggressively. A positive value suggests a bullish attitude, whereas a negative one signals a bearish perspective.
As observed, funding rates have been trending downward in recent months, hitting their lowest levels. This consistent decline suggests a prevailing bearish sentiment in the market, with a noticeable lack of buying interest. Demand in the perpetual markets must increase for Ethereum to recover and approach its all-time highs. If the current trend continues, further price declines are likely in the mid-term.
Read More
- Hades Tier List: Fans Weigh In on the Best Characters and Their Unconventional Love Lives
- Smash or Pass: Analyzing the Hades Character Tier List Fun
- Why Final Fantasy Fans Crave the Return of Overworlds: A Dive into Nostalgia
- Sim Racing Setup Showcase: Community Reactions and Insights
- Understanding Movement Speed in Valorant: Knife vs. Abilities
- Why Destiny 2 Players Find the Pale Heart Lost Sectors Unenjoyable: A Deep Dive
- PENDLE PREDICTION. PENDLE cryptocurrency
- W PREDICTION. W cryptocurrency
- FutureNet Co-Founder Roman Ziemian Arrested in Montenegro Over $21M Theft
- How to Handle Smurfs in Valorant: A Guide from the Community
2024-08-29 15:55