Looking for a price analysis of Ethereum? In this article, we’ll discuss whether the next target for Ethereum is $1400 or $1800. Whether you’re a crypto enthusiast or an investor, this analysis will help you make an informed decision. Read on to learn more about the current trends in Ethereum’s price and what the future may hold for this popular cryptocurrency.
Ethereum’s Price Dips Below Moving Averages, Consolidation Phase Imminent
Ethereum’s price recently experienced a significant drop, falling below the critical 100-day and 200-day moving averages (MAs). This bearish sign indicates a potential downward trend for ETH. However, the price has found support within a crucial range, suggesting the possibility of an imminent consolidation phase.
Analyzing the Daily Chart
An in-depth analysis of the daily chart reveals that Ethereum’s breach beneath the 100-day and 200-day moving averages, at around $1,835 and $1,800 respectively, led to a noticeable downtrend that eventually brought the value down to the pivotal support zone at $1.6K. The 200-day moving average holds significant significance as an indicator of prevailing market trends, and when the price remains below this MA, it commonly signals a bearish sentiment.
Currently, the $1.6K support level has proven its resilience in upholding the price, indicating the potential for a recovery and subsequent pullback. Nevertheless, the recent downtrend has shifted the market’s structure into a more bearish stance, increasing the likelihood of retesting the $1,400 zone in the coming weeks.
Examining the 4-Hour Chart
When focusing on the 4-hour timeframe, it becomes clear that ETH lost the critical support point of $1.8K, resulting in a temporary end to the prevailing downtrend as the price found support within the range of $1.5K. This support level has demonstrated its efficacy in maintaining the price, leading to a period of sideways consolidation. During this phase, Ethereum’s price movement has taken the form of a roughly symmetrical triangle pattern, which can develop into bullish or bearish signals depending on the direction of the breakout.
Uncertain Price Trajectory in On-chain Analysis
The current state of Ethereum’s price trajectory remains uncertain, as there is no clear inclination towards an upward or downward movement. To gain more insights into Ethereum’s current state, it is essential to analyze the futures market sentiment.
An analysis of Ethereum’s funding rates, which indicate the dominance between long traders and short sellers, reveals an apparent pattern. Following a sudden impulsive decline and a consolidation phase with stagnant price action, the funding rates show a downward trend, forming lower peaks on the chart. This pattern suggests a lack of interest in taking long positions in the futures market, signaling a potential bearish trajectory.
Despite the prevailing bearish sentiment, there is still a possibility of a minor corrective phase before a more pronounced downward trend. If the funding rates turn negative, there could be a cascade of short liquidations, potentially leading to a substantial bullish rebound that propels the price upwards.