Will Ethereum Push Past $2,000 Following a 10% Weekly Growth Spurt? (Ethereum Price Assessment)
In a turn of events, Ethereum has witnessed a significant uptick, edging close to a crucial resistance zone around the $1.8K mark. Despite this upward movement, the asset seems to be losing steam, possibly setting the stage for a short-term corrective consolidation prior to another bullish surge.
Technical Analysis
The Daily Chart
Ethereum's recent price increase stemmed from powerful buying activity at the critical $1.5K support level, causing it to breach a substantial resistance zone near $1.8K. This periodic price jump left a noticeable value gap, evidencing the involvement of astute investors on the buy side. However, the $1.8K region also coincides with a former order block, brimming with supply, making it a formidable hurdle.
Subsequently, Ethereum is expected to experience a period of consolidation before undergoing a minor correction followed by its next major move. In the event of buyers successfully breaching this resistance, they stand to target the vital $2.2K level.
The 4-Hour Chart
On the smaller timescale, Ethereum's transmission to a bullish market structure was confirmed following the breakdown of a lengthy descending channel, propelling it towards the $1.8K resistance zone. This level corresponds with previous significant swing lows, further accentuating its importance. However, the upward momentum has come to a halt due to reaching this crunch point, leading to a period of reduced volatility.
Simultaneously, a bearish divergence between the price and RSI indicator has surfaced, suggesting a likelihood of a short-term corrective move. Consequently, a prolonged consolidation or a minor pullback is anticipated before any subsequent bullish breakout attempt.
On-Chain Analysis
The Binance liquidation map continues to offer valuable insights into Ethereum's present market structure and potential future price movements. Liquidity pools, often amassed around key psychological levels, tend to act as strong magnets, drawing the price as market participants attempt to trigger stop-losses and liquidations.
Following the recent substantial downtrend, a noteworthy buildup of liquidation points has materialized just above Ethereum's previous swing high around the critical $2K mark. Historically, during market recoveries or moments of bullish sentiment, the market gravitates toward such liquidity pockets, as institutional players and smart money participants take aim at trapped sellers by triggering forced liquidations.
At present, Ethereum's price action exhibits mounting resilience, having managed to rebound from the important $1.5K support area and reclaim significant technical levels. Should the asset continue its forward momentum and charge into the $2K liquidity pool, an avalanche of short liquidations could be unleashed. This would most likely intensify volatility and boost buying pressure, sending Ethereum soaring rapidly towards the subsequent critical resistance zone around $2.5K.
Binance Exclusive: Sign up here and secure a $600 bonus on your initial deposit!
BitMEX 20% fee rebate and Risk-Free trading: Join BitMEX via this link to enjoy a 20% fee rebate and a risk-free trading incentive for new users!
Cryptocurrency chartsEthereum (ETH) Price
- Whale Alert: According to data gathered from Whale Alert, more than 70,000 ETH has been transferred within the last 24 hours. Keep an eye on large transactions to determine possible trends in Ethereum's price movement.
- Market Sentiment: Despite the ongoing russia-ukraine conflict and the volatile geopolitical climate, the cryptocurrency market appears to have found support, slightly alleviating the bearish sentiment. Pay close attention to any significant macroeconomic factors that might impact Ethereum's trajectory.
- The upward movement in Ethereum, despite nearing the resistance zone of around $1.8K, indicates a potential short-term consolidation before another bullish surge, highlighting the likelihood of a corrective phase.
- The current price increase of Ethereum was prompted by strong buying activity at the $1.5K support level, breaching a substantial resistance near $1.8K, yet this area, being a former order block, poses a formidable hurdle.
- On the 4-hour chart, Ethereum's price, following the breakdown of a lengthy descending channel, is expected to enter a consolidation period or experience a minor pullback before attempting a bullish breakout.
- The Binance liquidation map indicates a significant buildup of liquidation points just above Ethereum's previous swing high around the $2K mark, potentially leading to an avalanche of short liquidations if Ethereum surges towards this area.
- On-chain analysis reveals that more than 70,000 ETH has been transferred within the last 24 hours, suggesting possible trends in Ethereum's price movement that investors should monitor.
- Despite the volatile geopolitical climate, the cryptocurrency market, including Ethereum, appears to have found support, alleviating the bearish sentiment, emphasizing the resilience of the crypto market amidst uncertain financial and technological landscapes.
