Rebound in progress – The cryptocurrency market is very volatile, we can see it again. The second capitalization of cryptocurrencies climbs 80% after several months of declines. After a flash break below the $1,000 threshold, Ethereum is attempting a comeback to $2,000. About two months away from the final update The Merge, Ethereum can he still make a new ATH? Ethereum seems solid, some elements suggest that Ethereum has not said its last word!
This analysis of the Ethereum price is brought to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.
Ethereum Weekly: Back to $1,900?
You never get bored in the cryptocurrency market. While some specialists turned to an Ethereum at $400the protege of Vitalik Buterin is in the direction of his weekly resistance:
On a weekly basis, Ethereum rebounded well at the level of the bracket at $970 and took the opportunity to change dynamics to weekly. Indeed, according to the Dow theory, Ethereum has reversed the trend after several months of declines.
The resistance to $1,900 could reject the price if the buyers fail to overcome the sellers. This is the area where sellers can regain control, we will have to be vigilant. In addition, the RSI is close to the bearish trendline initiated last May. Sooner or later this trendline will give way and this will release strength for the buyers, but there is no indication that this will happen in the coming weeks.
If we want to celebrate the transition from proof of work to proof of stake, buyers will have to push to make yield the weekly resistance and the bearish trendline on the RSI. A reintegration of the range $1,900 – $3,900 would be exceptional, but we are not there yet.
On a daily basis, Ethereum approaches double resistance
On a daily basis, Ethereum is approaching double resistance:
- The resistance at $1,750 (red) could dismiss the lesson. This is an important resistance, as it sits at the weekly resistance level.
- the first stop (0.382 Fibonacci retracement). This is the level to exceed in a downtrend to be able to think that the rebound is not a simple false bounce. It is located approximately $1,700.
If the course succeeds in freeing itself from its resistorsthe price could return to the shorts reloading zone located between $2,500 and $3,400. The bearish trendline (brown) could also be resistance in the reloading area (0.618-0.786).
At the momentum level, the RSI is in agreement with the rise in prices. There are no signs of slowing down at this time.
Continuation for Ethereum in the short term
Ethereum just broke the bullish right triangle by the top :
The bullish right triangle has just broken and looks set to reach the resistance mentioned above at $1,750. It is likely that the price will return to the support level for validate support. A rejection is likely at the resistance levelyou will have to be careful.
Ethereum re-enters the range against Bitcoin
It was an assumption made in This article on Ethereum. This hypothesis is verified, the range did not break, there was only a DETOUR as was the case at the end of 2021:
While the majority of players thought the range had given way, Ethereum decided otherwise. the tidy is again in the news and the price is currently stumbled against the bearish trendline. It will be necessary to exceed it and break the range on the rise for Ethereum to continue to outperform the Bitcoin.
When Ethereum outperforms Bitcoin, the altcoins can express themselves fully. This is a sign of a bull market, because it means that the players are ready to risk their capital in assets with little capitalization. This is not yet the case, but this reintegration remains very positive in view of The Merge.
The momentum is currently breaking the bearish trendline initiated in May 2021. This is another very encouraging sign for the continuation of events. We will have to stay above this in the weeks to come.
Ethereum in derivatives markets: Binance’s perpetual contract
The perpetual contract of Binance is the contract that generates the most volume. It is interesting to study it to realize the actor behavior. Here it is :
Since the beginning of May, the price has fallen by more than 70% and the number of open positions increased by more than 100%. Funding being globally neutral, it is complicated to have indices concerning the behavior of the actors. One thing is certain, the fall did not allow open interest to be brought back to correct levels.
Interestingly, open interest dropped significantly when price broke resistance at $1,250. the long/short ratio has fallen sharply showing that the actors were betting low during the range above $1,000. This may lead us to think that the fall in open interest is due to shorts clearance sale. Is the course going back to $3,000 to bring open interest back to a correct level? It’s a bit early to tell.
Ethereum may be on the rise again in view of The Merge which is due to arrive on September 19, 2022. We will see if the famous saying “buy the rumor, sell the news” (buy during the rumor, sell when the news sort) is checked again. In the meantime, Ethereum is re-entering the range against the Bitcoin and shows encouraging signs for the coming weeks. It is entirely possible to see Ethereum back to $1,900 in the coming days or weeks. Please note that the level for buyers to hold is at $1,250. If this level is lost, there is a high chance of making a new low.
Is it possible to be gwinner every time? Whether the Bitcoin price is in great shape, or going through turbulence, Coin Trading offers you to increase your chances of success. Indeed, Trading Du Coin allows individuals to access an algorithmic and 100% automated trading tool. A real trend mechanism, this tool was designed to adapt to market reversals and position itself on the most dynamic crypto assets of the moment.