Ethereum is losing momentum: Crypto analysis of April 10, 2024

Ethereum consolidates after six consecutive weeks of gains. Let’s examine the future outlook for ETH together.

The Situation of Ethereum (ETH)

After reaching $4,091, the price of Ethereum experienced a decrease of over 25%, bringing it down to about $3,060. From this price level, ETH’s price has re-entered its previous support at $3,300, thereafter relying on it to form a peak just below $3,700. To effectively reach this level, a second push from the $3,300 support was necessary. Unfortunately, after reaching $3,700 this Tuesday, April 9, it seems that this level has been rejected, thus confirming the idea that the cryptocurrency’s price is currently in a consolidation phase in the form of a range.

At the time of writing this article, one Ether is worth $3,500. It is positioned above the set value zone of $3,350, which is quite reassuring. However, there is cause for concern given that Ether tends to fall below the 50-day moving average. Indeed, this could signal a potential trend change, likely to intensify selling pressure. Obviously, Ethereum’s dynamics have recently shown a downward trend, as indicated by the oscillators and the price of Ethereum itself. In the long term, this decrease in momentum could prove worrying for the cryptocurrency’s price.

The current technical analysis has been conducted in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you’ll find Live streams, educational content, and mutual support around financial markets in a professional and friendly atmosphere.

Focus on Derivatives (ETHUSDT)

The open interest in ETH/USDT contracts has followed the direction of its price. Indeed, we can see that these have increased and then slightly decreased this Tuesday, April 9. It’s interesting to observe that the most significant liquidations have been of long positions during the downward movements. Although this demonstrates a sort of buyer’s capitulation, it is reassuring that a buying interest has lately countered, as confirmed by the funding rate.

The one-month liquidation heatmap for ETH/USDT reveals that the liquidation area around $3,700 has attracted seller interest. Indeed, we can see that upon reaching this level, the cryptocurrency’s price underwent a downward variation. Today, the most significant liquidation zones are found at $3,800 and higher, around $4,100. Below the current price, we can note the zone around $3,370 and $3,190. The approach of the price towards these levels could trigger a massive activation of orders, thus increasing the risk of a period of heightened volatility for Ethereum. Hence, these zones represent a critical point of interest for investors.

The Hypotheses for the Price of Ethereum (ETH)

• If the price of Ethereum holds above $3,300, we could anticipate a return to $3,700. The next resistance to consider, should the upward movement continue, would be at $3,900 – $4,000, even the last Ethereum peak above $4,100. At this stage, this would represent an increase of over +17%.

• If the price of Ethereum fails to stay above $3,300, we could envisage a return to around $3,000. The next support to consider, should the downward movement continue, would be in a price range of around $2,900 to $2,800. At this stage, this would represent a decrease of close to -19%.

Conclusion

Even though its underlying structure remains bullish, Ethereum’s latest fluctuations have triggered a period of uncertainty. Indeed, its positioning beneath certain critical thresholds suggests a potential reorientation to be closely monitored, which could escalate the selling pressures. Paradoxically, this consolidation may just as well inspire buyer support, to continue its upward trend. In any case, it will be crucial to closely observe the price reaction at different key levels to confirm or negate the current hypotheses. It is also important to remain vigilant to potential “fake outs” and market “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on more fundamental factors.