Ethereum Awakens As Bitcoin Marks A New All-time High: Technical Analysis Of November 6, 2024

While Ethereum is in a consolidation phase, Bitcoin’s ATH triggers a buying rebound on the crypto. Let’s examine the future outlook for ETH together.

Situation of Ethereum (ETH) price

After a drop of nearly 40% from the $3,600 mark, Ethereum has sparked renewed buyer interest, allowing it to enter a consolidation phase in the form of an ascending triangle. Thus, the price of ETH has formed increasingly higher highs and established a resistance zone around $2,800. Recently, the price of ETH rebounded off the $2,400 support. This latest rebound has formed a double bottom, a chart pattern indicating a continuation of bullish momentum.

At the time of writing, the price of Ethereum is trading around $2,600. The cryptocurrency is stabilizing at this price level, just below an important value zone. Ethereum has thus surpassed its monthly pivot point as well as its 50-day moving average. While this may be perceived positively, it is important to note that the medium-term trend of the cryptocurrency remains bearish. On the bullish momentum side of Ethereum, a slight recovery is observed, as reflected by both the price of ETH and its oscillators.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Currently a trainer at Family Trading, a community of thousands of active proprietary traders since 2017. You will find Lives, educational content, and mutual assistance around financial markets in a professional and friendly atmosphere.

Focus on Derivatives (ETHUSDT)

The open interest of Ethereum perpetual contracts has followed the trajectory of its underlying asset, demonstrating a relatively healthy market, with speculative interest mostly directed towards buying. These observations are supported by a positive funding rate. However, on the CVD side, it has diverged from these latest indicators, showing persistent selling interest on the orders placed at market. Regarding liquidations, a recent spike in selling liquidations suggests a possible capitulation of the selling pressure in favor of buyers.

According to the liquidation heatmap for ETH/USDT contracts, a notable area of interest has appeared above the $2,400 mark. This seems to have sparked subtle buyer interest, with the price of Ethereum holding at this level. Currently, significant liquidation zones are located on either side of the current Ethereum price: above, we can note the zone around $2,800, and below, those around $2,300 and $2,250. The price approaching these levels could trigger a massive order activation, thus increasing the risk of a period of heightened volatility for the crypto. These zones therefore represent crucial points of interest for investors.

Forecast for Ethereum (ETH) price

• If the price of Ethereum holds above the $2,400 zone, a bullish continuation could be anticipated, with a recovery target around $2,720 and a next resistance to watch around $2,800. If this bullish movement continues, a potential breakthrough above $3,000 could be considered, representing an increase of about 15%.

• If Ethereum fails to hold above $2,400, a pullback towards $2,300, or even $2,250, could be envisaged. The next key support, in the event of a continued bearish movement, would be around $2,100, indicating a drop of about 30%.

Conclusion

Ethereum shows signs of recovery with encouraging consolidation, marked by stabilization of its price and renewed buyer interest. Although resistances are still present, the latest technical formations suggest a potential bullish continuation, despite an underlying trend that remains cautious. Therefore, it will be essential to closely monitor the price reaction at key levels to validate or adjust current forecasts. Finally, let’s remember that these analyses are based solely on technical criteria, and the price of cryptocurrencies can evolve rapidly depending on other more fundamental factors.