Ethereum (ETH) emerges from the shadows: Crypto Analysis of January 11, 2024

The price of Ethereum has crossed the upper limit of its range, propelling it towards a new high. Let’s examine the future prospects for ETH together.

Ethereum (ETH) Situation

The price of Ethereum was stuck in a range for more than a month. This period of consolidation ended, stimulated by the approval of the first Bitcoin spot ETFs by the SEC. As a result, ETH broke through its previous peak at $2,400, reaching the level of $2,600. It’s also important to mention that the CME Ethereum contract is on the verge of filling its bearish gap dating back to May 2022.

Thus, the recent fluctuations in Ethereum indicate that the bullish trend continues. This assertion is supported by the upward orientation of the 50 and 200 day moving averages. On the oscillators side, they remain above the median threshold. This signals a bullish momentum. However, a potential bearish divergence with ETH’s price suggests a slowdown in this dynamic, which could signal an upcoming period of consolidation or decline.

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

Focus on Derivatives (ETHUSDT)

The open interest in Ethereum saw a significant rise of over 35% in two days. This increase started from $2,240. This surge represents the addition of over $1 billion on Ethereum’s perpetual contracts. Given that Ethereum’s trend is bullish, we can conclude that the majority of traders were anticipating a continuation of this upward trend. This assumption is reinforced by the fact that significant liquidations of short positions did not have a notable effect on the open interest.

Assumptions for the Ethereum (ETH) Price

If the price of Ethereum maintains above $2,400, we could anticipate a bullish continuation up to the $2,700 level. The next resistance to consider, if the upward movement continues, would be the threshold of $29,000 to even $3,000. At this stage, this would represent an increase close to +17%.

If the price of Ethereum fails to hold above $2,400, we could envision a fallback to $2,140. The next support to consider, if the downtrend continues, would be more or less around the $2,000 level. At this stage, this would represent a decrease close to -23%.

Conclusion

Just like its parent cryptocurrency, Ethereum is starting the year 2024 with notable volatility, partly due to the excitement related to the highly anticipated SEC decision regarding Bitcoin spot ETFs. On this matter, the question arises: After Bitcoin ETF, is it Ethereum’s turn? What is certain is that it will be crucial to carefully observe the price reaction at the various key levels to confirm or refute the current assumptions. It’s also important to stay vigilant about potential “fake outs” and market “squeezes” in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria, and cryptocurrency prices can also move rapidly due to other more fundamental factors.