ETH facing key resistance at $2.8k, bones looking to re-emerge

Ethereum recently found support at $2.1K after a major cascade and experienced a slight bullish rally.

However, the price is now moving back towards the broken lower boundary of the wedge, indicating a possible completion of the pullback. This move points to a possible bearish continuation in the coming days.

By Shayan

The daily chart

A closer look at the daily chart of ETH reveals that after significant market turmoil, the cryptocurrency broke below the lower limit of the wedge at $2.8 thousand and experienced a remarkable cascade. However, the price found support at the crucial $2.1K support zone, which led to a bullish reversal. Subsequently, buying pressure emerged, leading to a period of slight bullish pullbacks towards a notable resistance threshold.

This threshold marks the lower limit of the previously broken wedge, where the prevailing supply has the potential to stop the bullish momentum and reject the price in the coming days.

However, if Ethereum cannot regain this crucial resistance, a pullback will be completed, leading to a possible bearish continuation with the aim of reaching significant support at $2.5 thousand.

Source: TradingView The 4-hour chart

On the 4-hour chart, the bullish reactivation of ETH is evident. The price experienced a period of pullback to the upside, making higher highs and higher lows.

However, the cryptocurrency is now facing a formidable resistance region between the Fibonacci levels of $2.6k and $2.8k.

This range serves as the main target for the corrective stage of the market, with the potential for price rejection in the coming days. On the other hand, during the recent pullbacks, ETH has emerged within a bearish continuation triangle pattern, further emphasizing the bearish continuation scenario.

However, if the price faces rejection and breaks below the lower boundary of the triangle, the continuation of the bearish trend towards $2.1 thousand will be imminent. Overall, action over the next few days will be crucial in determining Ethereum’s next move, with current indicators favoring a bearish outlook.

Source: TradingView

By TradingRage

After the recent crash, many investors have suffered significant losses, especially in the perpetual futures market. As a result, analyzing the updated state of the futures market could be beneficial for a better understanding of the current market dynamics.

This chart presents Ethereum’s open interest metric, which measures the number of open futures positions, both short and long. Higher values ​​are usually associated with more volatility, while lower OI mainly leads to better price stability.

As the chart suggests, open interest has dropped significantly following the recent price drop, indicating a massive number of liquidations. If there is sufficient demand in the spot market, this can lead to a good result as the market can experience a more sustainable uptrend.

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