Ethereum

bullish

Daily

<p>Ethereum encountered a significant rejection at the $2.8K threshold, followed by a pullback to the wedge’s broken lower boundary.</p>
<p>This price movement reflects a bearish sentiment and suggests a potential continuation of the downward trend, with the next target being the $2.1K support region.</p>
<h2 id="technical-analysis">Technical Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<h3 id="the-daily-chart">The Daily Chart</h3>
<p>Ethereum had been struggling near the lower boundary of a multi-month wedge at $2.8K for several weeks before encountering significant selling pressure, leading to a notable rejection.</p>
<p>As anticipated in our prior analysis, ETH completed a successful pullback to this broken level, followed by a sharp decline. The substantial supply pressure around the $2.8K mark suggests that this rejection could push the price toward the critical $2.1K support region.</p>
<p>Moreover, the 100-day moving average recently crossed below the 200-day moving average at $3.2K, forming a “death cross.” This bearish signal reinforces the expectation of continued downward movement toward the crucial $2.1K support zone in the short term.<a href="https://cryptopotato.com/wp-content/uploads/2024/08/ETH-D-6-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-356851" src="https://cryptopotato.com/wp-content/uploads/2024/08/ETH-D-6-scaled.jpg" alt="" width="2560" height="1307" srcset="https://cryptopotato.com/wp-content/uploads/2024/08/ETH-D-6-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/08/ETH-D-6-300x153.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/08/ETH-D-6-1024x523.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/08/ETH-D-6-768x392.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/08/ETH-D-6-1536x784.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/08/ETH-D-6-2048x1046.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/08/ETH-D-6-50x26.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<h3 id="the-4-hour-chart">The 4-Hour Chart</h3>
<p>On the 4-hour chart, Ethereum could not break through the key resistance region defined by the 0.5 ($2.6K) and 0.618 ($2.8K) Fibonacci levels, leading to heightened selling pressure.</p>
<p>This resulted in a significant rejection at the $2.8K level, initiating a pronounced downtrend. Additionally, ETH broke below the ascending wedge’s lower boundary on the 4-hour timeframe, a pattern that typically signals trend continuations. Consequently, the asset is expected to continue its decline in the short term, with sellers likely targeting the crucial $2.1K support level.<a href="https://cryptopotato.com/wp-content/uploads/2024/08/ETH-4H-6-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"></a></p>
<h2 id="on-chain-analysis">On-Chain Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<p>The futures market has played a significant role in Ethereum’s recent price movements, with the past few weeks highlighting this influence. Analyzing futures market sentiment offers valuable insights into potential price trends.</p>
<p>This chart showcases the Ethereum Funding Rates metric, which gauges whether buyers or sellers are more aggressive in placing orders. Positive values reflect a bullish sentiment, while negative ones indicate a bearish outlook.</p>
<p>As observed, funding rates have been trending downward in recent months, hitting their lowest levels. This consistent decline suggests a prevailing bearish sentiment in the market, with a noticeable lack of buying interest. Demand in the perpetual markets must increase for Ethereum to recover and approach its all-time highs. If the current trend continues, further price declines are likely in the mid-term.<a href="https://cryptopotato.com/wp-content/uploads/2024/08/Ethereum-Funding-Rates-All-Exchanges-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-356852" src="https://cryptopotato.com/wp-content/uploads/2024/08/Ethereum-Funding-Rates-All-Exchanges-scaled.jpg" alt="" width="2560" height="1440" srcset="https://cryptopotato.com/wp-content/uploads/2024/08/Ethereum-Funding-Rates-All-Exchanges-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/08/Ethereum-Funding-Rates-All-Exchanges-300x169.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/08/Ethereum-Funding-Rates-All-Exchanges-1024x576.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/08/Ethereum-Funding-Rates-All-Exchanges-768x432.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/08/Ethereum-Funding-Rates-All-Exchanges-1536x864.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/08/Ethereum-Funding-Rates-All-Exchanges-2048x1152.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/08/Ethereum-Funding-Rates-All-Exchanges-50x28.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<p>The post <a href="https://cryptopotato.com/ethereum-price-analysis-is-eth-doomed-to-plummet-to-2-1k-soon/" rel="noopener noreferrer nofollow">Ethereum Price Analysis: Is ETH Doomed to Plummet to $2.1K Soon?</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

Ethereum Price Analysis: Is ETH Doomed to Plummet to $2.1K Soon?

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