Ethereum (ETH) Holds Steady at $3.5K, Bears Eye $3,000 Next
Ethereum's price has stayed around the $3,500 mark, providing a stable position despite market corrections. However, bears are now targeting $3,000 as the next critical support level.
Daily Chart Analysis
Ethereum (ETH) recently failed to break above the $4,000 resistance level and retreated back to $3,500. This $3,500 level is crucial because it currently prevents the price from falling further towards $3,000. If the price breaks below $3,500, it is expected to quickly move towards the $3,000 support zone and the 200-day moving average. These elements together mark $3,500 as a key level for future price direction.
4-Hour Chart Analysis
In the shorter-term 4-hour chart, Ethereum's price has been fluctuating around the $3,500 level. Here, a classical chart pattern has been forming, and a potential breakout from this pattern will determine the next direction. The Relative Strength Index (RSI) is near 50%, indicating a balanced market momentum.
Sentiment Analysis
Open Interest
The Open Interest chart for Ethereum shows the total value of all futures contracts across exchanges. High values often lead to market volatility. From a $3,000 recovery, ETH's Open Interest spiked from $7 billion to nearly $13 billion. This spike indicates that some over-leveraged positions were liquidated, adding selling pressure that supported the recent price recovery. However, further downside risks remain as the Open Interest is still significantly higher than in March, when prices were similar.
Ethereum's stability at $3,500 is currently holding off a larger market decline, with critical support and resistance levels playing a significant role in future price movements. Investors and traders need to watch these levels closely to understand potential market shifts.
