Ethereum's Price Struggles at Key Resistance
Ethereum recently found support at $2.1K after a significant price drop and has seen a slight rebound. However, it appears to be retracing towards a critical resistance level, suggesting a possible bearish trend in the coming days.
Technical Analysis
Daily Chart Insights
On the daily chart, Ethereum broke below a key level at $2.8K, leading to a cascade in prices. Support was found at $2.1K, sparking a small reversal. Ethereum is now approaching the lower boundary of a previous wedge formation at $2.8K. If it fails to surpass this resistance, the price could retreat, targeting a support level at $2.5K.
4-Hour Chart Breakdown
On the 4-hour chart, Ethereum's price shows signs of recovery, highlighting a series of higher highs and lows. Yet, it faces tough resistance between the $2.6K and $2.8K Fibonacci levels. This resistance zone could halt the upward trend. A bearish triangle pattern suggests further decline if Ethereum breaks below this pattern, potentially revisiting $2.1K.
Onchain Analysis
Recent market movements have led to significant losses, particularly in the futures market. The Ethereum Open Interest metric, which tracks open futures positions, has dropped, indicating widespread liquidations. This drop in open interest could stabilize prices if demand picks up in the spot market. A lower open interest often correlates with less volatility, hinting at a potential for more stable growth.
Understanding these technical indicators and market dynamics can help investors anticipate Ethereum's potential price movements. As always, keeping an eye on key resistance and support levels is crucial for making informed investment decisions.
