Ethereum’s price has been struggling to break above the $4,000 resistance level and establish a new all-time high. However, despite this challenge, the market has shown resilience compared to other coins during the current correction phase. In terms of technical analysis, on the daily chart, ETH’s price has dropped back to $3,500 after being rejected from the $4,000 level. The $3,500 mark is currently acting as support and preventing further decline towards $3,000. If this level is broken, the market could quickly move towards the $3,000 support zone and the 200-day moving average.
In the 4-hour chart, the price of Ethereum has been hovering around $3,500, with a classical chart pattern forming in this zone. The direction of the upcoming move depends on the breakout from this pattern, as well as the RSI oscillating around 50%, indicating equilibrium in momentum. In terms of sentiment analysis, the open interest chart shows a spike in Ethereum’s open interest on all exchanges, from around 7 billion to almost 13 billion. This increase may have contributed to the recent price recovery, as over-leveraged positions were liquidated, leading to selling pressure on the market.
However, despite the recent recovery, the high open interest levels could indicate more downside potential for Ethereum, as the current open interest is still significantly higher than in March when ETH was trading at similar prices. Overall, the $3,500 level is key for Ethereum’s price action, as a break below could signal further downside towards $3,000 and the 200-day moving average. The direction of the upcoming move will largely depend on how ETH reacts to this critical level in the coming months.