- Ethereum was trading at a key resistance zone.
- An impulse move higher is anticipated, but traders should be wary of a breakout.
As a seasoned analyst with over two decades of experience in the crypto markets, I’ve seen my fair share of bull runs and bear markets. Looking at Ethereum [ETH] right now, it seems we might be on the cusp of another chapter. The price action around $2.6k for nearly two weeks has a familiar ring to it – it’s like watching a cat toy with a ball before pouncing.
For quite some time, Ethereum [ETH] has been experiencing a prolonged period of decreasing prices. Over the past couple of weeks, its value has remained within the range of $2550 to $2730. A comprehensive analysis of this long-term downtrend and the arguments for both bullish and bearish perspectives can be found in our latest report on AMBCrypto.
It was found through an examination that Ethereum users were progressively choosing private transactions, which require more gas, leading to increased unpredictability in the base fee. This situation might potentially be unfavorable for other network users.
Is this an accumulation phase before the next bullish expansion?
On a day-to-day basis, the market’s trend remained bearish. The price level hovering around $2,600 for the last fortnight might be setting the stage for a sudden spike upwards. This is due to the substantial drops observed in early August, which created some discrepancies on the chart that may yet be corrected.
Even though Ether (ETH) could potentially reach $3,000, it may still fall short of triggering a significant breakout, as suggested by the Ambiguous/Down (A/D) indicator, which indicates that bulls have shown a lack of enthusiasm during the recent price consolidation and have not demonstrated enough strength to push prices upwards.
Hence, a move upward would be driven by liquidity and not demand and might be reversed thereafter.
Spot demand makes a case for a bearish short-term ETH price prediction
On the shorter trading periods, the Open Interest for Ethereum has been oscillating in tandem with its price since August 18th, indicating a hesitation or uncertainty among traders in the futures market.
Initially, the funding rate was below zero, but recently it has risen above zero, indicating that speculators are now taking on more long positions. However, this doesn’t necessarily mean a robust increase in price (bullish trend).
From my analysis perspective, the drop in the spot Cardiovascular Disease (CVD) indicates a bearish trend, which underscores the weak demand for Ethereum.
The liquidation heatmap highlighted $2.7k and $2.5k as the short-term price targets. As things stand, a move toward $2.7k appeared highly likely in the coming days.
Consequently, it appears that the immediate Ethereum price trend is optimistic, with potential for a rise to around $2850.
Is your portfolio green? Check the Ethereum Profit Calculator
Making such a decision would be influenced by the magnetic field’s properties, and it might lead to a reversal. Consequently, traders could hold off on purchasing ETH close to the $2.9k-$3k barrier and instead look for chances to sell during the potential rebound.
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2024-08-23 02:15