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Ethereum Price Analysis: Can ETH Take Down This Key Resistance Level?
ETH has been on a rollercoaster ride lately, and the question on everyone’s mind is whether it can breach the crucial $1.8K resistance level. In this analysis, we’ll delve into the technicals to determine the likelihood of such an event occurring.
Firstly, let’s take a look at the daily chart. The price created a clear bullish reversal pattern at the $1.5K support level and quickly rallied toward the order block located at the $1.8K mark. If the market experiences a rejection from this order block, the bearish fair value gap located below the price can provide support and push the asset back higher.
Notably, with the 100-day MA taking a nosedive around the $2.2K level, this area is a probable bullish target for ETH on the daily timeframe.
Moving on to the 4-hour chart, ETH created a clear bullish market structure shift, as it has broken out of the descending channel to the upside. An impulsive rally has taken the price from around the $1.5K area to the $1.8K level in only a few days. The $1.8K resistance zone is critical since it has provided support for the market on multiple occasions over the past few months. As such, a bullish breakout above this area could mark the beginning of further bullish continuation.
Lastly, let’s take a look at the on-chain data from CryptoQuant. The Ethereum Open Interest chart suggests that during the last couple of cycles, Ethereum’s open interest has consistently correlated with price trends. It rose steadily during upswings and dropped sharply during corrections. Recently, we’ve seen a slight recovery. This growing open interest during a price rebound signals renewed speculative positioning, possibly anticipating a breakout or continued relief bounce.
However, considering past patterns, this also raises the risk of a volatile flush if the price stalls or reverses sharply again. Therefore, risk management will still be crucial in the coming weeks.
In conclusion, while there are no guarantees in the cryptocurrency market, our analysis suggests that ETH may not have enough momentum to overcome the $1.8K resistance level, potentially leading to a pullback in the near future.
This article is provided by CryptoPotato for informational purposes only and should not be considered investment advice.
Source: https://cryptopotato.com/ethereum-price-analysis-can-eth-take-down-this-key-resistance-level/
