Ethereum
Crypto: Ethereum remains above its support Crypto Analysis of May 9, 2024
Ethereum rebounds from its support after experiencing a 30% drop. Let’s take a look at the future prospects of ETH.
Ethereum (ETH) Price Status
After reaching a high of $4,090, the Ethereum Price quickly reached its support at $3,300. Unfortunately, after two rebound attempts, ETH finally broke this downward price level. As a result, the cryptocurrency quickly headed towards the $2,900 mark. Since then, Ethereum appears to be consolidating in a range above this latest price level.
At the time of writing, one Ether is worth $2,984. It is positioned below the value zone set at $3,400. Likewise, Ethereum price is below its 50-day moving average, which is now trending downward. Even if the underlying structure remains bullish, this naturally calls into question its sustainability, at least in the short term. As for oscillators, we see that they display market dynamics that seem to be stabilizing, pointing towards a period of uncertainty.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. He is now a coach at Family businessa community of thousands of own account traders active since 2017. You will find Lives, educational content and support on the financial markets in a professional and friendly atmosphere.
Focus on ETHUSDT derivatives
Open interest in ETH/USDT contracts has followed their price action. However, on Thursday, May 9, a slight divergence was observed. As the price of ETH trended lower, open interest in ETH/USDT contracts increased slightly, which could indicate an increase in short positions. Unfortunately, liquidations, not being significant, do not provide more information. However, a slight increase in the funding rate was seen, which could signal bullish pressure on perpetual contracts associated with Ethereum.
The three-month ETH/USDT liquidation heatmap reveals that the liquidation zone around $2,900 has attracted buying interest. Indeed, each time this level was reached, the price of the cryptocurrency recorded a notable increase. Currently, the biggest liquidation zones above its real price are at $3,300, and even higher, between $3,600 and $3,700. The $4,100 zone is also particularly marked. Below the current price, the $2,700 level should be highlighted, and even lower, the $2,450 level. Price approaching these levels could lead to a massive triggering of orders, increasing the risk of a period of heightened volatility for Ethereum. These areas therefore represent a crucial point of interest for investors.
Ethereum (ETH) Price Predictions
- If Ethereum price sustains above $2,900, we could expect a return to $3,300. The next resistance to consider if the bullish move continues would be $3,700 or even higher at Ethereum’s last high. At this stage, this would represent an increase of over +37%.
- If Ethereum price fails to sustain above $2,900, we could be looking at a return around $2,700 or even $2,600. The next support level to consider if the bearish movement continues would be at a price range around $2,300. At this stage, this would represent a drop close to -22%.
Conclusion
Despite a significant drop from its peak, Ethereum is showing signs of stabilization. However, being below critical thresholds and an uncertain trend highlight the need to be cautious in assessing its future price. It will therefore be crucial to closely observe the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant for possible “counterfeits” and market “squeezes” in each scenario. Finally, remember that these analyzes are based solely on technical criteria, and that the prices of cryptocurrencies can also change quickly depending on other more fundamental factors.
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