Ethereum’s price has been trading within a narrow range recently without showing any strong intention to move significantly in either direction. However, there may be changes expected soon.
The Daily Chart
On the daily chart, the price has been fluctuating between the 50-day moving average situated around the $1900 level and the $1800 fixed support level during the past seven days.
Classically, from a price action perspective, the market is likely to reach lower levels as it has formed a lower high and lower low recently. In this situation, the level of $1800 could break, and ETH may test the crucial 200-day moving average situated around $1600.
On the other hand, if ETH breaks above the 50-day moving average, it may experience an uptick and eventually test the short-term resistance zone of $2200.
The 4-Hour Chart
Observing the 4-hour chart, it is evident that the price has formed a large falling wedge pattern below the $2000 level. A breakout above this pattern could be a classic continuation pattern and could result in a run towards the resistance zone of $2200.
Regardless, the price still has a long way to go to reach the upper boundary of the pattern as it is currently testing the support area of $1800. The RSI indicator provides minimal insight as it has been relatively flat around the 50% level, indicating an equilibrium in momentum.
Ethereum Funding Rates
Ethereum’s price was rejected below the $2000 level over the last few weeks and has been consolidating since. The indecision on the chart is also apparent when evaluating the futures market sentiment.
This chart displays the funding rates metric, which indicates whether the futures market sentiment is relatively bullish or bearish. Positive values indicate bullish market sentiment, whereas negative values show bearish sentiment.
It is apparent that following a period of consistently positive funding rates during the price rally since early 2023, this metric has been showing small positive and negative values with no specific consistency.
It could be inferred that neither the bulls nor the bears have established their hold in the futures market, and the price may move range-bound until futures change.