Ethereum Price Analysis: Can ETH Challenge $3.4K Again or Is a Drop Below $3K Looming?
ETH had a short-term push above the trendline and examined the $3,400 resistance, however the bounce rapidly pale. The market is displaying indicators of exhaustion once more, and bulls are struggling to keep up management. Unless stronger momentum steps in, Ethereum could also be liable to rolling again into the vary.
Technical Analysis
By Shayan
The Daily Chart
After breaking above the descending trendline, ETH tapped into the $3,400–$3,500 resistance zone however didn’t maintain larger costs. The asset remains to be buying and selling under the 100-day and 200-day transferring averages, each situated above the $3,500 mark, and regardless of flipping the trendline, the construction stays fragile.
The latest candle reveals rejection from the identical zone that capped the worth in early November, making this a clear short-term barrier. If patrons lose grip, the subsequent potential help is across the $2,900 bullish order block, which coincides with the damaged trendline in the intervening time.
The 4-Hour Chart
On the 4-hour chart, it’s evident that the breakout above the bearish trendline was clear, however the worth confronted speedy resistance close to $3,400 and dropped again under $3,300.
The earlier resistance has now become a minor help zone round $3,100–$3,200. However, the rejection wick from the latest high reveals a lack of follow-through. If this help fails, the worth may revisit the $2,950–$2,900 vary. Structure stays susceptible, and RSI is cooling off after overbought circumstances, suggesting weakening momentum.
Sentiment Analysis
Open Interest
Open Interest is step by step rising once more and sits close to $19.4B, whereas the worth has bounced again to round $3.2K. The final time this combo was seen, rising OI with flat or correcting worth, it preceded a sharp transfer.
This may go both means, however traditionally, when OI climbs quicker than worth, it indicators aggressive speculative positioning, typically adopted by liquidations. Therefore, merchants ought to keep cautious right here as the chance of a flush shouldn’t be off the desk, particularly if spot market demand doesn’t observe.
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