Ethereum is currently stabilizing below $1,850 after a rejection, showing early signs of market exhaustion. The price is holding stable but momentum is fading, raising concerns about future movements. Key support levels, particularly the $1,700 pivot, are crucial as any decline could lead to a drop towards $1,500. Sentiment analysis suggests cautious optimism with neutral funding rates, though traders remain on the sidelines, which can impact market direction significantly.
Ethereum is showing signs of market exhaustion, especially after facing a rejection at the $1,850 resistance level. Currently, it’s consolidating below this major area, with price stability giving way to a noticeable weakening in momentum. While open interest and funding data hint of a cautiously optimistic outlook, any continuation upward hinges on buyers maintaining crucial short-term levels.
Looking at the daily chart, ETH’s struggles are evident. Following the rejection at the supply zone, the price has become trapped in a consolidation pattern, with momentum dwindling further. It remains below both the 100-day and 200-day moving averages, which are tilting downwards, indicating a bearish macro outlook. The previous rally from $1,500 had strength, yet it failed to hold above the $1,900 level, stalling any bullish sentiment. Should ETH breach the $1,700 pivot, the next significant support might be around $1,500, reflecting the previous reversal base.
On the four-hour chart, we see ETH moving within an ascending channel. The price is currently declining toward the lower boundary after earlier rebuffing the $1,800 resistance. This setback from the channel’s upper limit, alongside a false breakout, led to a sharp drop that signals buyer exhaustion. As it stands, ETH is now testing prior demand at around $1,740; if that level gives way, we might see a swift decline towards the $1,500 mark.
Despite some signs of optimism, sentiment analysis shows funding rates hovering around neutrality with a slight positive trend across exchanges. This pattern reveals a lack of aggressive long positions, which while healthy for potential future rallies does not denote immediate bullish confidence. Open interest has seen a slight uptick in recent days, signalling renewed market engagement; however, it’s not near euphoric levels. Building open interest along with price compression raises the risk of liquidation events unless buyers show robust interest.
Currently, ETH’s funding rate setup indicates many participants are adopting a wait-and-see approach. The market appears balanced, without significant long or short skewing, but it remains susceptible to rapid shifts in sentiment. If the asset continues to linger under resistance, more aggressive traders might begin to fade long setups, generating downward pressure. Conversely, an unexpected surge above the $1,900 threshold could surprise the market and lead to a wave of short-covering. For now, market sentiment leans cautiously neutral, albeit with a slight bearish inclination in the near term.
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Cryptocurrency charts sourced from TradingView.
