Ethereum’s price is currently in a tight range between the 100-day moving average of $3364 and the 200-day moving average of $3212. A breakout from this range will determine its future trajectory. On the daily chart, Ethereum experienced rejection near the $3.5K resistance region, leading to a drop to the $3212 support zone. The price is currently confined within a crucial range, with a break above potentially sparking upward momentum, while a break below could signal a bearish trend towards the $3K support zone.
Looking at the 4-hour chart, Ethereum faced selling pressure near $3.5K, resulting in a drop below $3.3K and a descent towards the $3K support level. The market is now in a corrective stage, retracing towards the broken $3.3K threshold. An ascending wedge pattern has formed, indicating a potential bearish continuation if breached from the lower boundary. If the price pulls back and breaks below this level, a decline towards the $2.8K support range could be expected.
Despite Ethereum’s recent price trends, the futures market sentiment suggests a shift towards more balanced sentiment. The funding rate metric shows gradual increases since the rejection from $3.5K, indicating a cooling off of the overheated market. With a more balanced sentiment and potential renewed demand, Ethereum could be poised for a new upward trajectory. This shift in market sentiment, combined with increased demand, may pave the way for Ethereum to break through resistance levels and potentially set the stage for a rally towards its all-time high.
In conclusion, Ethereum’s price is currently range-bound between key moving averages on the daily chart. A breakout from this range will determine its future direction, with potential bullish momentum if the upper boundary is breached and bearish trends if the lower boundary is broken. On the 4-hour chart, Ethereum is in a corrective stage following a drop from the $3.5K resistance level, with an ascending wedge pattern indicating potential bearish continuation. However, the futures market sentiment suggests a shift towards a more balanced state, with the possibility of renewed demand driving Ethereum towards new highs in the near future.
