Ethereum’s overall outlook remains bullish, but it is currently facing significant resistance and struggling to surpass it. A short-term rejection is possible before the next trend based on recent action.
By Shayan
The Daily Chart
Ethereum is experiencing difficulty in pushing the price above the significant resistance region of $1.8K. After reaching this crucial range, Ethereum began consolidating with no clear direction leading to dull price action.
This dynamic suggests that there is a battle between sellers and buyers, with a breakout from this range likely determining the short-term direction of ETH. However, the clear significant bearish divergence between the price and the RSI indicator suggests that there is a higher possibility for a short-term rejection before initiating the next bullish rally.
The 4-Hour Chart
The future short-term direction of Ethereum’s price remains uncertain, with recent action offering no clear indications. However, there are two crucial levels of support and resistance that Ethereum is facing: the $1.7K level as support and the channel’s upper trendline at $1.9K as resistance.
Breaking above the channel’s upper trendline would signal a bullish turn in the long-term outlook. A sharp decline and a fall below the mid-boundary level could indicate a bearish trend, with the next level of support being the $1.5K mark.
By Shayan
The graph below displays the 14-day moving average of the Funding Rates metric along with Ethereum’s price. Over the past few months, Ethereum has shown a bullish trend, and the overall market sentiment has turned positive. This shift in sentiment is reflected in the funding rates metric.
However, during a recent shakeout, the funding rate metric plummeted and dropped below 0 for a short period of time.
Yet after another bullish price rally, the metric has reclaimed 0 and turned green, indicating a bullish sentiment over the market. Nonetheless, Ethereum’s general bias is bullish for the mid-term, and the metric should be closely monitored to prevent losses due to sudden price drops.
