Ethereum price has surged by more than 16% in the past week, breaching the $3,500 mark and propelling speculation about its future trajectory.
Current Situation of Ethereum
As of the latest update, one Ether is trading around $3,850, marking new highs for the cryptocurrency. This surge has seen Ethereum surpass the 61.8% Fibonacci retracement level, calculated from its previous all-time high. Notably, Ethereum recently underwent a bearish phase, testing this level as support before rallying towards the 78.6% level, which lies just shy of $4,000.
Despite its bullish momentum, Ethereum's price has notably diverged from its 50-day moving average, suggesting a period of heightened volatility that could lead to a correction. The upward revision in Ethereum's momentum is evident in various oscillators, indicating a potential overbought situation.
Technical analysis, conducted in collaboration with Elie FT, a seasoned investor and trader in the cryptocurrency market, reveals significant volatility in Ethereum's open interest for USDT perpetual contracts, indicating uncertainty among speculators. While funding rates have remained positive, recent drops in Ethereum's price have coincided with a decrease in open interest and liquidation of long positions, suggesting a retreat of some buying traders from the market during corrections. However, these positions have begun to reopen alongside Ethereum's resurgence, indicating growing interest in the cryptocurrency.
The one-month Ethereum liquidation heatmap highlights a rebound from a subtle liquidation zone around $3,300, where buying interest predominated, contributing to ETH's subsequent rise. Currently, the most significant liquidation threshold below its current price lies around $3,000, potentially triggering heightened volatility as Ethereum approaches these levels.
Assessing Ethereum's potential price movements, if it maintains support above $3,350, bullish continuation towards $3,900 or even $4,000 is conceivable, with further resistance at $4,100 or $4,500. Conversely, failure to sustain above $3,350 could signal a retreat towards $3,000, with subsequent support around $2,800, representing a potential drop of approximately 25%.
Also, Check Out Will ETH Price Cross The $3,000 This Year?
https://coinpedia.org/price-prediction/market-price-prediction-ethereum-2019/