Ethereum bearish despite consolidation, volatility on the horizon

Storm over? After a hidden drop below the psychological $1,000 limit, Ethereum is looking for buyers. Ethereum is recording a recovery of about 35% from the low under $900. With the fundamental advancement in the Ethereum side with The merger can be published in Sibolia in JulyR, the course is struggling. A few weeks ago, we legitimately believed that the arrival of Proof of Stake on Ethereum could give a price boost, but that is not the case. At the moment, Ethereum has broken important levels and remained fragile as The Merge approaches. Summer is coming and it’s often a quiet period for establishments. Could Ethereum Resume Colors for Its Long-awaited Update? Let’s look at the clues left by the graphs.

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Ethereum suspended under 2018 ATH Weekly

Ethereum price against the dollar (1W)

Ethereum is currently under ATH for 2018. A few months ago no one would have thought to see Ethereum under 1000 dollars, but the market decided so. since a break 2,150 USD On a weekly basis, the price of Ethereum is at bearish momentum. The remaining wick in the week of June 13 is encouraging, but there is still no confirmation that a consolidation zone will appear on the Ethereum price. You will have to wait at least once bullish engulfing candle or a double bottom has been confirmed.

If the price rebounds, the next resistance located in $1350 USD Which corresponds to the old support from last summer. It would be absolutely necessary to get rid of it to see Ethereum perform again. At the moment, ETH still exists Bearish momentum, below the descending trend line (Brown color). Sellers have their hands on this crypto asset.

momentum bearish Below the downtrend line. This trend line acts like a taut spring waiting to return to equilibrium. Once we break it into the Weekly Show, we should be able to find some of them Buyer flow on the original created by Vitalik Buterin.

Ethereum Daily: We must maintain the support at $880

Ethereum went under 1000 dollarswe should now try to develop a low market at these levels:

Ethereum is likely to find resistance around $1,370 on the upside.
Ethereum price against the dollar (1D)

Ethereum is located in downtrend On a daily basis. There is no sign of a trend reversal at the moment. In the event of a bounce, you must find Ethereum resistance about $1,370 with confluence:

  • The first stop (0.382 Fibonacci retracement)
  • subordinate resistance Corresponding to 2018 ATH
  • subordinate downtrend line

This is a lot of hurdles for buyers who will have to show some strength to get past them resistors.

The Pushing force Is he trying Downtrend broken. A trend that has been around since the end of March. may give a littleenergy to Recovery near $1,370. If the momentum fails, there is a good chance that Ethereum will be seen again under 1000 dollars. It will then be necessary to defend the lowest level found on June 18th so that it does not slip towards 500 dollar arc.

Possible short-term recovery for Ethereum?

a bounce, bounce Larger volume can occur if the price crosses the downtrend line:

Ethereum could bounce back towards $1,450 or even $1,750.
Ethereum price against the dollar (1 hour)

The course was drawn a Right-angled triangle His fracture began to fall nearly 50%. The price is now in contact with the trend line, if it gives way, it could lead to bounce, bounce. If the cycle remains as bearishthe recoil must not exceed 1450 USD. In the event of a larger retracement, it is not impossible to see the price at the resistance level at $1750.

Momentum can again block against trend line. This is like resistanceIt must be bypassed so that buyers can bypass sellers.

Ethereum remains fragile against Bitcoin

Ethereum is fragile against Bitcoin, and a return to support 2 will hurt investors.
Ethereum price vs Bitcoin (1 watt)

On a weekly scale, Ethereum owns break support important (S1). It is currently stabilizing just below the support it has become resistance. There are now two scenarios:

  • rising : This corresponds to a refund the support. This will be very interesting for Ethereum buyers. Restoring this support can lead to ETH/BTC pair to resume bullish momentum weekly.
  • bearish : Script A alcohol market With Ethereum that will continue to decline Bitcoin underperforming. When looking at the chart objectively, this is the scenario that most likely remains after the recent decline.

The momentum of the ETH/BTC pair is bearish Below the downtrend line. Momentum must come from this bearish momentum To find the buyer flow.

Ethereum perpetual contract on Binance

Derivative markets let you know behaviors market players. If they are optimistic, they will tend to long (the bet is higher). On the contrary, actors will tend to shortseh market (betting) if they are pessimistic about the market. Let’s look at it Binance Contract Who is born more? the sound :

There are a lot of open positions in this decade.
Binance Perpetual Contract on Ethereum (1D)

according to Funding rateActors are not No one-way speculation. In fact, when the funding is very high, players are buying largely with leverage. Conversely, when the funding is negative, players bet lower. Here, the financing rate is a bit positivebut it remains one right level.

Open interest, which describes the number of open positions, remains very high Despite the recent decline. The price has decreased by 75% Since the beginning of April, but The number of jobs continues to increase (+60%). This scale indicates two possibilities:

  • Players keep wanting to find the low level with leverage. Then there is a strong chance of continued decline (to liquidate their positions).
  • Most of them are shorts. In this case, we can find out a It was similar to the one in 2021.

The long/short ratio Shows the level of equilibrium Which is rarely found and usually leads to bounces. There is currently As many open positions oriented to buy (long) as many open positions oriented to sell (short). This scale is based on Quantity of positionsnot the size of the positions.

Ethereum has fallen very sharply in recent weeks. In two weeks, of courseEthereum lost 50%. The price is currently very volatile and this is likely to continue given the number of positions in the derivatives markets that continue to increase. Ethereum is struggling against Bitcoin, we will have to resume the support mentioned in the article to believe that the fall is behind us. At the moment, the price of Ethereum is bearish and it will take time for that to change. Buyers will have to show up to prevent the price of Ethereum from permanently settling below the psychological $1,000 limit.

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