ETH hovers around $2,500, facing uncertainty in breaking key resistance levels.
Daily charts show tight price ranges, indicating potential volatility and market movements ahead.
Analysts predict cautious sentiment among traders amid declining open interest and previous liquidations.
Ethereum (ETH) has been lingering above $2,000, creating excitement in the market. Traders and investors now wonder if ETH will break through key resistance levels or fall back to lower support zones.
Recent price movements show a tightening range that could lead to significant volatility. Additionally, predictions by analysts don't paint a rosy picture for ETH, like the post below highlights.
https://twitter.com/CoinWebKo/status/1843339455845077354 Daily Chart Dynamics
On the daily chart, Ethereum remains trapped within a $500 range. The upper resistance level stands at $2,700, while the support zone hovers around $2,200. The market has tested the $2,700 resistance several times without breaking through.
As a result, a move toward the $2,200 support seems likely in the coming weeks. The Relative Strength Index (RSI) is approaching the 50% mark from below. This indicates that bearish momentum is fading. Such a shift could lead to a potential reversal.
Insights from the 4-Hour Chart
Looking at the 4-hour chart reveals a clearer picture of recent price consolidation. A large symmetrical triangle pattern has formed. Each boundary has been tested twice, showing a tight battle between buyers and sellers.
Recently, the market broke below the $2,500 level and has retested this point from below. This pattern may set the stage for a test of the lower trendline, which could spark further price movements.
The open interest metric adds more context to market participation. Rising OI indicates increased trader interest, while falling OI shows traders exiting positions. Ethereum’s OI and price have closely mirrored each other.
The significant surge in late 2023 and early 2024 highlighted strong market engagement and bullish sentiment. However, a steep decline in mid-2024 likely resulted from major liquidations. This led to decreased activity and price drops.
For now, Ethereum reflects cautious sentiment among traders. Although both price and open interest remain below previous peaks, this cooldown may create opportunities for a sustainable rally.
The post ETH Approaches $2,500 Target, Analyst Remains Uncertain Amid Next Key Resistance Level appeared first on Crypto News Land.
