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Cryptocurrencies: Ethereum remains above its support Crypto Analysis of May 9, 2024
Ethereum rebounds from its support after suffering a 30% decline. Let’s take a look at the future prospects of ETH.
Ethereum (ETH) price situation
After reaching a peak of $4,090, the Ethereum price it quickly reached its support at $3,300. Unfortunately, after two rebound attempts, ETH finally broke through this bearish price level. As a result, the cryptocurrency quickly headed towards the $2,900 mark. Since then, Ethereum appears to be consolidating in a range above this latest price level.
As of this writing, one Ether is worth $2,984. It is positioned below the value area set at $3,400. Likewise, Ethereum price is below its 50-day moving average, which is now trending lower. While the underlying structure remains bullish, this naturally calls into question its durability, at least in the short term. As for the oscillators, it can be seen that they show a market dynamic that seems to stabilize, indicating a period of uncertainty.
The current technical analysis was conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Now he is a coach at Family businessa community of thousands of traders with independent accounts active since 2017. There you will find lives, educational content and support on the financial markets in a professional and friendly atmosphere.
Focus on ETHUSDT derivatives
Open interest on ETH/USDT contracts followed their price movement. However, a slight divergence was observed on Thursday, May 9. While the price of ETH trended lower, open interest for ETH/USDT contracts increased slightly, which could indicate an increase in short positions. Unfortunately, the liquidations, not being significant, do not provide more information. However, a slight increase in the funding rate was noted, which could signal bullish pressure on the perpetual contracts associated with Ethereum.
The three-month ETH/USDT liquidation heatmap reveals that the liquidation area around $2,900 has attracted buyer interest. In fact, every time this level was reached, the price of the cryptocurrency recorded a notable increase. Currently, the most significant liquidation zones above the actual price are located at $3,300, and even higher, between $3,600 and $3,700. The $4,100 zone is also particularly marked. Below the current price, the $2,700 level should be highlighted, and even lower, the $2,450 level. The price approaching these levels could lead to a massive trigger of orders, thus increasing the risk of a period of greater volatility for Ethereum. Therefore, these areas represent a crucial point of interest for investors.
Ethereum (ETH) Price Predictions
- If the price of Ethereum were to remain above $2,900, we could anticipate a return to $3,300. The next resistance to consider if the bullish move continues would be $3,700 or even higher than Ethereum’s last peak. At this stage this would represent an increase of more than +37%.
- If the price of Ethereum fails to stay above $2,900, we could consider a return around $2,700 or even $2,600. The next support level to consider if the bearish move continues would be in a price range around $2,300. At this stage, this would represent a decline of close to -22%.
Conclusion
Despite a significant decline from its peak, Ethereum is showing signs of stabilization. However, being below critical thresholds and an uncertain trend highlight the need for caution when evaluating its future price. Therefore, it will be crucial to closely observe the price reaction at various key levels to confirm or reject current assumptions. It is also important to remain vigilant to potential “fake outs” and market “squeezes” in each scenario. Finally, let us remember that these analyzes are based exclusively on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.
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