Ethereum is currently struggling to reach new highs after a period of sustained growth, trading at $2,241. Despite the struggle, analysts have identified several support levels that could prevent further declines in the price of the altcoin king.
On the daily chart, Ethereum has continued its upward trend after breaking above the 200-day moving average and a broad descending channel. The cryptocurrency is consolidating below the $2,400 level, having not yet surpassed it, while maintaining a position above the $2,000 mark.
The Relative Strength Index (RSI) hovers around the 50 level, indicating a balance in momentum. The short-term price movement largely depends on whether Ethereum can stay above the $2,000 support or break above the $2,400 level to target the $2,700 resistance zone.
The 4-hour chart shows Ethereum’s price oscillating between $2,100 and $2,400 over the past month. Following a recent sharp decline towards the lower end of this range, the price has shown signs of recovery, continuing to consolidate in this area.
Ethereum has entered a significant uptrend in recent months, rising from below $1,000 to over $2,400. Currently, the price exhibits uncertainty about its future trajectory, prompting a closer look at futures market sentiment. Open interest data across all exchanges, which counts the number of open futures contracts regardless of trade direction, suggests that higher values indicate confidence in the trend among futures investors, while lower values point to uncertainty. Moreover, an increase in open interest is associated with higher price volatility and a greater likelihood of liquidation tiers. Recent sideways consolidation coincided with a notable decrease in open positions, which may indicate a cleaning out of many long positions, hinting at a healthy futures market and potentially paving the way for a new trend. However, the direction of the upcoming trend remains uncertain until there is a significant move above or below one in the funding rate data.
