Crypto: Ethereum’s Momentum Continues to Fall! Analysis of June 26, 2024

After peaking, Ethereum is experiencing increasing imminent selling pressure. Let’s explore the future prospects for ETH together.

Current State of Ethereum (ETH)

After reaching a high of $3,950 following the approval of Ethereum spot ETFs, Ethereum’s price faced selling pressure which naturally pushed down the cryptocurrency’s price. This decline was fueled by the fall in Bitcoin, which swept the entire crypto market. So Ethereum is in a short-term downtrend. Nevertheless, it seems to have attracted buying interest at $3,250, which allowed it to stay above $3,300, a price level highlighted in the June 12 analysis. This raises hope for a potential recovery that counteracts this selling pressure.

Ethereum is now just below its 50-day moving average. This is not reassuring for the medium/long term structure of the crypto. However, we can be reassured by the fact that it remains above its 200-day moving average. As for the price dynamics of Ethereum, it is no surprise that it continues to fall, as evidenced by the oscillators and Ethereum’s price itself. While this can be a favorable signal in an uptrend, it can become worrisome as this decline increases.

The current technical analysis was carried out in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today he is an instructor at Family Trading, a community of thousands of active real estate traders since 2017. You will find lives, educational content and support around financial markets in a professional and friendly environment.

A Closer Look at Derivatives (ETH/USDT)

The open interest in Ethereum perpetual contracts seems to have followed the trajectory of the crypto price. This shows an exit of positions by speculators as ETH’s price falls. This phenomenon can be explained by a capitulation of buyers, subtly illustrated by the latest predominantly buy liquidations. Coupled with a continuous drop in funding rates, this shows increasing selling pressure on ETH/USDT contracts. Of course, this is not convincing from a buyer’s point of view.

The liquidation heatmap of ETH/USDT over three months shows that the contact of the last two liquidation zones with Ethereum’s price did not cause sustained buying interest. Currently, the main liquidation zones are above the current ETH price in recent months. Especially the zone just below $3,700 and the still visible one around $3,900. Below the current price, the significant zone is just below $3,100, extending to $2,800, where it looks more pronounced. Price approaching these levels could trigger massive order executions, increasing the risk of increased volatility for Ethereum. These zones therefore represent critical points of interest for investors.

Hypotheses for Ethereum (ETH) Price

If Ethereum’s price holds above $3,250, we can expect a bullish recovery to $3,500, or even $3,800. The next resistance to consider would then be $4,000 – $4,100. If the upward movement continues, it could be a new high at $4,500, paving the way to reach Ethereum’s ATH. At this point, this would represent an increase of over 32%. If Ethereum’s price does not hold above $3,250, we can foresee a return of around $3,000. The next support to consider, if the bearish movement continues, will be in a price range between $2,900 and $2,800. Lower down we can note the support at $2,700. At this point, this would represent a decrease of around 20%.

Closure

Ethereum is currently going through a decline affected by the crypto market crash. Despite this selling pressure, key support has maintained a certain price level, offering hope for a potential recovery. However, the situation remains uncertain, with ETH’s bearish dynamic continuing, which could become worrisome if this trend continues. Therefore, it will be crucial to carefully observe the price reaction at different key levels to confirm or invalidate current hypotheses. It is also important to remain vigilant against potential market “false outs” and “squeeses” in every scenario. Finally, remember that these analyzes are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.

Family business

Family Trading is a community of own-account traders active since 2017 that offers lives, educational content and mutual assistance around the financial markets, including that of cryptocurrencies with Elie FT, a passionate investor and trader on the crypto market.

Disclaimer:

The content and products mentioned on this page are in no way endorsed by Cointribune and should not be considered its responsibility.

Cointribune strives to provide readers with all relevant information available, but cannot guarantee its accuracy or completeness. Readers are urged to make their own inquiries before taking any action regarding the company, and to accept full responsibility for their decisions. This article is not investment advice or an offer or invitation to buy any products or services.

Investing in digital financial assets involves risks.

Read more