Ethereum
Ethereum ETF Launch Announced, Crypto Rebounds Over 20%! Analysis for July 17, 2024
After reaching the low end of its range, Ethereum has rebounded by almost 22%. Let’s take a look at the future outlook for ETH.
Ethereum (ETH) Price Situation
After reaching the lower part of its range around $2,900, an area mentioned in the bearish hypothesis of the analysis of June 26Ethereum has attracted buying interest, allowing it to rebound by more than 22%. In less than two weeks, the price of the crypto has regained $3,500. It seems that this rise was accelerated by the news of the Ethereum Spot ETFs Launched. Now, ETH has stabilized around its resistance. The most significant value areas are located on both sides of the crypto: below the current price, we can note $3,065. Above, we can identify the $3,800 zone.
A value zone is a volume-rich price range that can serve as a key level for investors.
At the time of writing, the ethereum price ETH is trading just below $3,500. The latest ETH fluctuations show a short-term bearish trend that is about to reverse, which could signal a continuation of the crypto’s medium- to long-term bullish trend. These statements can be supported by the fact that Ethereum has managed to reposition itself above the 200-day moving average. Unsurprisingly, Ethereum’s momentum has picked up with more fervor, as evidenced by its price and oscillators. All of these elements undeniably demonstrate a renewed buying interest in Ethereum.
The current technical analysis was carried out in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market, now an instructor at Family businessa community of thousands of owner traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.
Focus on derivatives (ETHUSDT)
Open interest in Ethereum perpetual contracts appears to have followed the trajectory of its underlying asset’s price. This indicates an increase in speculative activity in ETH. Given Ethereum’s recent surge, predominantly short liquidations, and a positive funding rate, the optimism surrounding Ethereum is evident. It can naturally be concluded that this interest in ETH/USDT contracts is mainly biased towards buying, reinforcing the conviction that the cryptocurrency’s bullish momentum will continue.
The ETH/USDT three-month liquidation heatmap reveals that the previously identified liquidation zone at $2,850 has been reached and likely sparked buying interest. Now, the most significant liquidation zones are mostly located above the current Ethereum price. Note the zones between $3,500 and $3,600, and just above that, between $3,650 and $3,750. Further up, the most significant zone is located at $3,900. Below the current price, $3,000 can still be noted. Approaching these levels could trigger massive orders, increasing the risk of a period of heightened volatility for Ethereum. Therefore, these zones represent crucial points of interest for investors.
Ethereum (ETH) Price Hypotheses
- If Ethereum price stays above $3,065, we could anticipate a continuation of the bullish trend leading to a break above $3,500. The next resistance to consider would then be around $3,700 or even $3,800. If the bullish movement continues, it could reach $4,000 or even $4,100. At this point, this would represent an increase of more than 18%.
- If Ethereum price fails to hold above $3,065, we could expect a return to around $2,900. The next support to consider, if the bearish move continues, would be around $2,800. Further down, we can note the support at $2,720. At this point, this would represent a decline of around 21%.
Conclusion
After re-entering the lower part of its range, Ethereum has shown a significant rebound. Buying interest in the crypto thus seems to have strengthened, supported by recent announcements and a medium-long term bullish trend that seems to continue. Optimism therefore seems to dominate regarding the future of the cryptocurrency. However, it will be crucial to closely observe the price reaction at different key levels to confirm or deny current hypotheses. It is also important to remain vigilant against possible “fake outs” and “market squeezes” in each scenario. Finally, remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also change rapidly depending on more fundamental factors.
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Family business
Family Trading is a community of proprietary traders active since 2017, offering live sessions, educational content and support around financial markets including cryptocurrencies, with Elie FT, investor and trader passionate about the crypto market, at its side.
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