Hello cryptocurrency family!
If you have been paying attention to the price of Ethereum recently, you can see that ETH is cooking. ETH showed its tough side by cooling off around the $3.2K mark and not making much of a move on the price side.
But hey, hold on tight! There are whispers in the cryptocurrency industry suggesting a possible surge in interest in buying Ethereum. Will we be ready to ride past the annual high of $4.1K? Let’s take a look at what the charts are saying.
daily chart dive
Looking at the daily chart, it is clear that ETH is no slouch. It has maintained its position at around $3.2K like a champ. That point seems to be very important, backed up by fancy terms like Fibonacci retracement levels and 100-day moving averages. translation? Because there’s so much support out there, it’s hard for sellers to lower their prices. It looks like buyers are flexing their muscles while keeping ETH on a stable path.
But there’s more!
Check the 4-hour chart
If we zoom in a little on the 4-hour chart, we can see something interesting. This is the wedge pattern right next to it. Imagine small triangles forming around price movements. Despite this sideways shuffle, ETH appears to have a loyal friend around $3K and offers some upside. But here’s the problem. We’re getting closer to the edge of that triangle, and it looks like we’ll break through one way or another. Will it be up, up, down or down, down, sluggish? Time will tell!
Learn more about trading basics in Part 2 of the guide.
On-Chain Analysis: The Scoop
Now let’s talk about what’s going on behind the scenes of the store. When the Ethereum price takes a breather like this, it is time to take a look at what the big players are doing. We are talking about the futures market, where experts move.
Checking funding rates and open interest can give you a clue as to what the vibe is like there. In these indicators, a positive mood means people are feeling optimistic, while a negative mood suggests some caution.
When ETH rose, it seemed like everyone took action and threw their hat in the ring with long positions. The futures market appears to be heating up like a summer fire, with open interest surging.
So what is the conclusion? ETH cooking!
Friends, it looks like we are in for a rough ride. Buckle up and hold on tight! Ethereum could hit all-time highs again. But remember that anything can happen in the cryptocurrency world. Stay alert and enjoy the roller coaster!
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