ETH is making an attempt to construct a short-term restoration, however the chart nonetheless displays a market trapped below heavy macro resistance.

The value is making an attempt to push by way of a clear trendline that has capped each rally since early October.

Momentum is bettering, however consumers nonetheless want a decisive break above the $3,500 space to shift the construction. Until then, each transfer greater stays weak to rejection.

Technical Analysis

By Shayan

The Daily Chart

On the every day chart, ETH continues to respect the descending trendline whereas nonetheless buying and selling effectively under the 100-day and 200-day shifting averages, positioned round the $3,600 mark. This retains the broader bias bearish, despite the fact that the value is slowly recovering from the capitulation low round 2.7k.

The essential area stays $3,400-$3,500, the place a key Fair Value Gap and bearish order block sit. If ETH can break and shut above that stage, it may sign a transfer towards the $4,000 zone.

Support ranges stay cleaner. The $2,900 short-term stage held a number of occasions, and under that, $2,500 and $2,200 areas are the sturdy demand zones. As lengthy as ETH stays above $2,900, consumers have a base to work with, however they nonetheless want a brand new greater high to verify pattern reversal.

The 4-Hour Chart

The 4-hour chart reveals ETH pushing into the descending trendline once more after defending the $2,900 zone. This vary is clearly performing as short-term help, however consumers haven’t proven sufficient energy to reclaim the $3,200 latest high. The RSI can also be mid-range, displaying no exhaustion, but in addition no sturdy momentum.

A rejection right here sends ETH again towards $2,900 for an additional take a look at. A clear breakout above $3,200, adopted by a retest, can be the first actual signal of bullish continuation. Without that, ETH merely stays caught below trendline compression, and the threat of one other liquidity seize to the draw back stays open.

On-Chain Analysis

Open Interest

Open Interest has been declining since September, whereas the value has additionally pulled again from the highs, indicating clear risk-off habits. The most vital half is that OI has not expanded throughout this latest bounce. That often indicators an absence of aggressive lengthy positioning. Traders are cautious, not chasing the transfer, and nonetheless unwinding positions from the earlier rally.

This sort of sentiment can truly gas a stronger breakout later, as a result of rallies that start on low leverage have a tendency to be more healthy. But for now, it reveals that the market doesn’t totally belief the upside. A fast spike in OI throughout a trendline breakout would verify actual participation returning. Until then, ETH stays in a neutral-to-cautious sentiment part.

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