Ethereum Price Analysis: ETH Rebounds and Eyes $3K but Bearish Pressure Persists
Ethereum has seen a light aid bounce over the previous few days after discovering assist close to $2,500. While the worth motion stays technically bearish general, there was a slight enchancment in short-term construction. However, warning continues to be warranted as macro resistance ranges loom overhead.
Technical Analysis
By Shayan
The Daily Chart
On the Daily timeframe, it’s evident that ETH is at the moment buying and selling round $2,900 after bouncing off the $2,500 demand zone. This stage held as robust assist, triggering a short-term rally that has now introduced the asset right into a minor provide zone close to $3,000. The RSI has additionally moved off oversold ranges and is now sitting close to 36, suggesting some cooling in bearish momentum.
Still, the worth is nicely beneath the 200-day (Yellow) and 100-day (Blue) shifting averages, that are performing as dynamic resistance. To shift the construction again to bullish, ETH must reclaim the $3,500 space and consolidate above it. Until then, upside strikes are thought-about corrective. A failure right here might end in one other drop towards $2,500 and even the essential $2,100 low.
The 4-Hour Chart
On the 4-hour chart, ETH has shaped a bearish flag just under the $3,000 resistance. This sample typically alerts potential draw back upon breakdown. The worth has been unable to interrupt above the important thing provide zone at $3,000 and is now exhibiting indicators of stalling, with the RSI hovering close to the 50 stage.
If this flag breaks down, the fast draw back goal is the $2,600–$2,500 demand space. On the flip facet, a breakout above $3,000 with robust quantity might invalidate the flag and open the door towards $3,500. However, given the confluence of resistance, consumers should be cautious right here and not chase longs into main zones.
Sentiment Analysis
Open Interest
Looking on the broader sentiment and futures knowledge, open curiosity on Ethereum has dropped considerably over the previous week, now sitting close to $16.9B. This cooling OI, alongside decrease funding charges, suggests a decline in speculative positioning, which is commonly an indication that the market is transitioning to a extra impartial state after a wave of compelled liquidations.
The drop in open curiosity additionally aligns with the current worth restoration, which was not closely supported by leverage, sometimes a more healthy sort of bounce. However, the truth that OI has not picked again up but signifies hesitation from market contributors and a scarcity of conviction on this transfer.
Until each the open Interest and the worth begin climbing once more, the bias stays cautious. Many merchants are probably sidelined or de-risking forward of key resistance.
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