Ethereum has experienced a frightening depreciation as prices have consistently produced lower highs and lows. But things may just be trying to change.
Technical Analysis
By Edris Dalakshi
Daily Charts
On the daily charts, ETH was on a strong downtrend, falling below the important 200-day moving average and losing multiple key support zones. Prices have recently bounced back from the $1,900 demand zone, but are facing resistance close to the $2,100 level.
200 DMA, currently over $2,800, adds additional overhead pressure, making recovery attempts difficult. Meanwhile, RSIs are climbing from sold territory, indicating potential short-term relief. However, the broader trend remains bearish unless ETH recovers an area of $2,400 and a 200-day moving average.
4-hour chart
On the four-hour chart, ETH infiltrates from the downward trend, leading to relief frilly of over $2,000. However, combined with the recent decline in RSI at $2,100 suggests it shows fertile momentum.
Immediate support is around $1,900, but if you can’t keep this level, your ETH will drop to the $1,800 area, which could even be lowered. Meanwhile, to gain control, the price must be pushed decisively above $2,100, and keep it at support.
Emotional analysis
By Edris Dalakshi
Open interest
Open profit across all Ethereum exchanges fell sharply from around $12 billion to about $12 billion, with prices falling to $1900, exceeding $200 billion. A decline in open interest comes with periods of time that reduces massive liquidation and speculative positioning, often accompanied by high volatility.
When open interest falls after an offensive price movement, it can wash away weak hands and set the stage for a reversal, but the current trends still show no signs of stabilization. A sustained downtrend in both price and open interest could drive even more bearish unless clear base formation and open profits begin to restructure in alignment with price recovery.
