đAttention BTC enthusiasts! The cryptocurrency market recently saw a sudden surge, with Ethereum experiencing a significant spike. However, as the price approaches a significant resistance level, there's a possibility of it being rejected.đ
Ethereum's daily chart shows an extended consolidation phase near the $1.6K support level, followed by a surge towards the 100 and 200-day moving averages. These moving averages now serve as dynamic solid resistance levels, and if the price is rejected within this range, it could indicate a valid pullback.đ
On the 4-hour chart, Ethereum's recent action indicates a positive outlook and suggests potential future behavior. The price formed a descending wedge pattern, which is a well-known bullish reversal pattern among technical traders.đ
However, the recent price spike has brought Ethereum close to an important resistance zone. This zone could impede the current upward rally due to intensified selling pressure. If the price surpasses this critical range, it would be favorable for Ethereum buyers and could lead to a surge towards the $2K resistance level.đ
On-chain analysis shows that the recent price spike coincided with a sharp rise in Open Interest, suggesting that the futures market may have been the driving factor behind the recent bullish rally. Traders should proceed cautiously and closely monitor this indicator, as high readings might be accompanied by significant liquidations that could lead to unexpected market downturns.đ
