- ETH dropped below key support levels, signaling potential further decline or consolidation.
- RSI trends suggest bearish momentum may be exhausting, signaling possible market reversal.
- Open Interest fluctuates, hinting at speculative activity and long-term investor interest near $2,809.
As the price of Bitcoin undergoes a correction, Ethereum faces potential further decline. Traders are closely watching key indicators to figure out what happens next. A key level near $2,809 is seen as a possible accumulation zone. How Ethereum reacts here could set the tone for the next move in the market.
Support and Resistance Levels to Watch
The price of ETH is currently moving between critical support and resistance levels. On the 4-day chart, the support zone is at $2,809.48, while the resistance level sits at $4,108.05. Traders should pay attention to these levels to understand whether Ethereum will reverse or continue its current trend. A drop below $3,593.46 confirmed the bearish momentum.
At press time, the price hovers near $3,297.19, a point in between support and resistance. This suggests Ethereum may consolidate before making a more significant move. If the $2,809.48 support holds, long-term traders may see this as a good buying opportunity. If this level fails, Ethereum could see deeper losses, which could affect the broader market.
Market Sentiment: Are Bears Losing Control?
The Relative Strength Index (RSI) is trending downward, signaling that selling pressure is increasing. As the RSI nears 30, it suggests that the bearish trend may be running out of steam. This could lead to a potential market reversal. With Ethereum approaching the $2,809.48 support, the RSI could fall further toward the oversold area.
A rebound in the RSI above 40 would likely push the price toward the $4,108.05 resistance. Without that rebound, Ethereum might continue its downward trend. Open Interest, the total number of outstanding futures and options contracts, also reveals market sentiment. After Ethereum dropped below $3,593.46, Open Interest increased, signaling more speculative activity.
However, after the sharp correction, Open Interest began to stabilize, indicating that traders were becoming less active. A sharp drop could signal traders closing positions, waiting for clearer signals. Open Interest rising again near $2,807.13 could point to long-term investors buying in or renewed interest in a rebound.
The post Ethereum’s Next Move: Key Signs of a Market Shift appeared first on Cryptonewsland.
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