- Ethereum has trended within a range in the past ten days.
- Futures traders continue to take long positions.
As a seasoned crypto investor with a keen interest in Ethereum [ETH], I’ve closely monitored its price action and market sentiment over the past few days. Based on my analysis, Ethereum has been trading within a horizontal channel, as indicated by the price range between $3638 and $3962. This consolidation is evident from the flat trend of key momentum indicators such as the Relative Strength Index (RSI) and Money Flow Index (MFI), which have been hovering around 64-65 and 63-64, respectively.
As a crypto investor, I’ve been keeping a close eye on Ethereum’s [ETH] price action. According to my analysis, Ethereum has been moving within a horizontal trading range since it broke above the $3650 resistance level on May 20th.
When the price of an asset remains stable and moves sideways within a specific range over an extended period, it creates a horizontal trading channel. This occurs due to a balanced interplay between buying and selling forces that keeps the asset’s price from exhibiting significant upward or downward trends.
As a crypto investor, I can tell you that the trendline drawing an upward angle on the chart acts as a barrier to price advancement for Ether (ETH), serving as resistance at around $3962. Meanwhile, the trendline with a downward slope functions as a cushion for the falling prices, acting as support at approximately $3638.
Ethereum price prediction shows bulls are here
Based on the data from ETH‘s crucial technical indicators, there has been a balanced interplay between purchasing and disposal actions in the recent trading sessions.
In recent days, Ethereum’s Relative Strength Index (RSI) and Money Flow Index (MFI), though remaining above the 50-neutral mark, have shown little variation.
Momentum indicators are described as being flat when their values appear to advance steadily without notable upward or downward fluctuations.
When their trends take this form, it indicates a lack of significant buying or selling activity. This is perceived by traders as a sign that the market isn’t providing a clear indication for a price surge in either direction.
As of this writing, ETH’s RSI was 64.92, while its MFI was 63.74.
Additionally, the ATR of the coin, which quantifies market volatility by computing the mean difference between its high and low prices over a defined time frame, indicated price consolidation with its decrease.
When the indicator decreases, it implies a reduced market turbulence and indicates that the asset’s price is moving in a relatively stable pattern with minimal extreme fluctuations up or down.
Futures traders are unmoved
As a researcher studying the cryptocurrency market, I’ve noticed that although Ethereum (ETH) hasn’t shown significant price changes in recent days, its futures market activity has remained robust. Specifically, since May 20th, the open interest for ETH futures contracts has expanded by an impressive 42%.
Is your portfolio green? Check the Ethereum Profit Calculator
When the open interest in an asset’s futures contracts significantly increases, it indicates that a larger number of traders are entering the market to establish fresh trading positions. Currently, Ethereum’s futures open interest stands at $16.45, according to Coinglass’ statistics.
With respect to the trading actions of these market participants, Ethereum’s favorable funding rate in the crypto exchange market indicates a higher demand for buying (long positions) compared to selling (short positions).
Read More
- JASMY PREDICTION. JASMY cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- DOGS PREDICTION. DOGS cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
- DOP PREDICTION. DOP cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- QUINT PREDICTION. QUINT cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- SQR PREDICTION. SQR cryptocurrency
2024-06-02 01:11