Ethereum Explosion In Sight? Technical Analysis As Of November 20, 2024

Ethereum crosses a key resistance and surpasses the symbolic threshold of $3,000. Let’s take a look at the future prospects for ETH.

Situation of Ethereum (ETH) Price

After experiencing a significant decline, the price of Ethereum has entered a consolidation phase in the form of an ascending triangle. After breaking through the upper part of this consolidation at $2,820, the cryptocurrency’s price soared to reach $3,400. It is interesting to note that this level represents a notable resistance, as evidenced by past pivot points. Unfortunately, reaching this threshold has sparked selling interest, preventing its breakout. Thus, the crypto is now in a short-term consolidation period, fluctuating between $3,200 and $3,000.

At the time of writing, the price of Ethereum is trading around $3,130. The cryptocurrency continues to evolve in a consolidation zone. Regarding the trend of Ethereum, it seems to be turning bullish again in the short, medium, and long term. ETH has gone back above its monthly VWAP and a significant value area. However, moving averages have not yet fully confirmed this orientation, as they remain crossed to the downside. Paradoxically, this could suggest a larger expansion to come for Ethereum’s price.

On the bullish side of the crypto, a notable recovery is observed, although it was temporarily affected by a slight correction of Ethereum. This is reflected as much in its price as in its oscillators.

The current technical analysis has been carried out in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of active proprietary traders since 2017. You will find live sessions, educational content, and mutual support 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, reflecting a relatively healthy market, with speculator interest predominantly oriented towards buying. These observations are corroborated by a positive funding rate. However, on the CVD side, a divergence is observed compared to these indicators, indicating persistent selling interest on market orders. Regarding liquidations, they remain insignificant, which could translate to a cautious management of positions by traders or a lack of sufficient volatility to trigger massive liquidations.

Since the expansion of Ethereum, the heat map reveals new liquidation zones on ETH/USDT contracts. Above the current price, levels of $3,250 and, slightly above, $3,350 can be identified. Below the current price, the $3,000 zone is particularly marked. Even lower, another zone is noted just below $2,900. The approach of the price towards these levels could trigger a massive order activation, thereby increasing the risk of a period of heightened volatility for the cryptocurrency. These zones thus constitute crucial points of interest for investors.

Forecasts for Ethereum (ETH) Price

• If the price of Ethereum stays above the $3,000 zone, a bullish continuation could be anticipated, with a recovery target around $3,450 and a next resistance to watch around $3,510. If this bullish movement continues, a potential breakout above $4,000 could be considered, representing an increase of about 26%.

• If Ethereum fails to hold above $3,000, a pullback to $2,750 could be considered. The next key support, if the bearish movement continues, would be around $2,360, or even $2,300, implying a decline of about 26%.

Conclusion

Ethereum shows signs of recovery after a period of decline, currently evolving in a short consolidation zone. Although the trend seems to be turning bullish again, technical signals remain mixed, suggesting a potential for progress in the future. The overall momentum remains positive despite some temporary corrections. Thus, it will be essential to closely monitor the price’s reaction at key levels to validate or adjust current forecasts. Finally, let us remind you that these analyses are based solely on technical criteria, and the price of cryptocurrencies can evolve rapidly based on other more fundamental factors.