Ethereum is encountering resistance near $1.8K after bouncing from the $1.5K support level. The price rallied recently, showing bullish market structures, but could face a pullback if the $1.8K level isn’t breached. On-chain data indicates rising sentiment but warns of potential volatility if price action stalls. Risk management remains critical for traders in the coming weeks.
Ethereum has recently shown some volatility, bouncing off the key support level of $1.5K. Despite this, it’s struggling to breach a significant resistance around $1.8K. If ETH can’t clear this hurdle, a downward pullback could be on the horizon, which traders should monitor closely.
In terms of technical analysis, the daily chart indicates that a bullish reversal pattern has formed at the $1.5K support, leading to a rally towards the $1.8K order block. Should the market face rejection at this resistance, a bullish fair value gap beneath the price could serve as support, potentially lifting the price higher again. The 100-day moving average has seen a decline, with $2.2K emerging as a logical bullish target if prices ascend further.
Zooming into the 4-hour chart, Ethereum has shown signs of positive market structure, breaking out from a descending channel to the upside. This rally has impressively taken the price from $1.5K to $1.8K in just a few days. The $1.8K mark is noteworthy; it’s previously served as a support level in recent months, which could mean that breaking above it might spark a larger upward move for ETH.
On the on-chain front, recent data from CryptoQuant reveals insights about Ethereum’s open interest within the derivatives market. Historically, open interest movement has closely mirrored price actions, increasing during bullish trends and dropping off during corrections. Recently, a slight recovery is noted, with ETH rebounding to $1.8K and open interest climbing close to $12B, indicating renewed speculative trading activity.
However, past patterns suggest a potential risk: if the price stagnates or reverses suddenly, it may lead to volatile sell-offs. With that in mind, risk management is paramount for traders in the upcoming weeks. Keeping an eye on these indicators could be key to navigating future market movements.
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