Crypto Analysis: Ethereum reaches the $ 3,000 threshold

Ethereum has reached a new peak, breaking through the psychological threshold of $3,000. Let’s examine the future outlook for ETH together.

Ethereum (ETH) Situation

After initiating a correction down to $2,160, the price of Ethereum resumed its upward trend by breaking its last peak at $2,729. At the time of writing this text, an Ether is trading around $3,000. This price level corresponds to the 50% Fibonacci retracement threshold, thus acting as a significant resistance. Ethereum’s recent rise has therefore allowed it to move back above its 50-day moving average, confirming that the cryptocurrency is still in an uptrend.

Naturally, Ethereum’s bullish momentum has resumed with strength, as confirmed by the oscillators. They have indeed bounced back above the median level and have surpassed their previous peak, invalidating the bearish divergence observed earlier. This development is therefore positive for a healthy continuation of ETH’s uptrend. However, it is to be noted that the RSI is in an overbought zone, which suggests a period of consolidation may be forthcoming.

The current technical analysis was conducted in collaboration with Elie FT, an enthusiast investor and trader in the cryptocurrency market. Nowadays a trainer at Family Trading, a community of thousands of self-funded traders active since 2017. Here you will find Live sessions, educational content, and support around the financial markets in a professional and warm atmosphere.

Focus on Derivatives (ETHUSDT)

It is interesting to observe that both the price of ETH and its open interest have evolved in a similar manner, although we can notice that ETH’s open interest has held up more than its price. This could indicate a persistent speculative interest in Ethereum. Positive funding rates can indicate that the speculators’ conviction on ETH/USD perpetual contracts is predominantly on the buyers’ side. As for liquidations, they are visibly not significant, which could demonstrate that the speculators largely agree with the direction taken by Ethereum’s price.

The one-month Ethereum liquidation heatmap shows that the cryptocurrency has recently crossed a notable liquidation zone, located between $2,800 and $2,700. The interest at this level has been noticeably on the buying side, given ETH’s upward trend. Currently, the most significant liquidation thresholds are below its present price, highlighting again the zones of $2,850 and $2,700, and even more notably, that of $2,400. The price’s approach towards these levels could trigger a massive influx of orders, thus increasing the potential for a period of heightened volatility on Ethereum. These areas therefore represent crucial points of interest for investors.

Scenarios for Ethereum’s (ETH) Price

If the price of Ethereum holds above the $2,850 mark, a continued uptrend towards the $3,100 level could be anticipated. The next resistance to consider if the bullish movement persists would be $3,350 and possibly $3,500. At that stage, this would represent an increase of more than +19%.

If the price of Ethereum fails to maintain above $2,850, a return to $2,700 could be envisioned. The next level of support to consider if the bearish trend continues would be at the levels of $2,500 and possibly $2,400. At this point, it would represent a decrease of close to -19%.

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Conclusion

Ethereum has bounced back after surpassing its last peak. Although a consolidation period may be considered, all signs indicate that the trend remains active. Could this be due to a potential approval of Ethereum Spot ETFs? What’s certain is that it will be crucial to observe the price reaction at various key levels with attention to confirm or refute the current assumptions. It’s also important to remain vigilant for potential “fake outs” and market “squeezes” in each scenario. Lastly, let’s remember that these analyses are based solely on technical criteria, and cryptocurrency prices can otherwise evolve rapidly based on more fundamental factors.