Ethereum Price Movement: Technical and Sentiment Analysis
Ethereum’s price has remained stagnant in a tight range recently, with little indication of any significant movement in either direction. Technical and sentiment analysis, however, suggests changes might be imminent.
On the daily timeframe, the price has been fluctuating between the $1900 mark’s 50-day moving average and the $1800 static support level for the past seven days. A lower high and a lower low were created recently, indicating that the market would most likely reach lower levels. In this scenario, $1800 may break, allowing ETH to test the crucial 200-day moving average, which is trending around the $1600 mark. Alternatively, if ETH escalates beyond the 50-day moving average, prices would most likely soar, eventually testing the $2200 resistance level in the short term.
Looking at the 4-hour chart, one can detect that the price is developing a large falling wedge pattern under the $2000 mark. If prices escape only above this pattern, it would most likely lead to a run-up to the $2200 resistance area. Nevertheless, the price continues to test the $1800 support zone, and the RSI indicator has been running relatively flat at the 50% mark, indicating momentum equilibrium.
Ethereum’s price has been rejected below the $2000 mark for the past few weeks, and it has sustained consolidation since then. Evaluating the futures market sentiment, one can observe the funding rate’s metric, indicating whether the futures market sentiment is relatively bullish or bearish. Positive values are associated with bullish market sentiment, while negative ones show bearish sentiment. Over time, this metric has been showing small positive and negative values with no particular consistency, following a period of consistently positive funding rates during the early 2023 price rally. Neither the bulls nor the bears have established domination in the futures market, and the price could remain range-bound until changes occur in the derivatives.
In conclusion, Ethereum’s price is currently locked in a tight range, and technical and sentiment analysis indicates imminent changes could happen in the near future. As always, investors are urged to conduct their research before making any investment decisions.
Technical Analysis: TradingView
Sentiment Analysis: CryptoQuant