CandleFocus

Ethereum Price Analysis: ETH Tumbles 4% Daily as Bears Regain Control, $2K Next?

Author: Content Editor
The Ethereum cryptocurrency is currently in a downward trend, with price action indicating a lack of bullish momentum for a reversal. It has been forming lower lows and lower highs, creating a descending channel on the daily chart. The recent rejection at the channel's middle boundary has led to another bearish retracement. Ethereum is currently trading within a key range, supported by $2K and capped by a resistance at around $2.5K. Until the price breaks out of this range, further consolidation is expected. On the 4-hour chart, Ethereum encountered selling pressure around the $2.6K and $2.7K levels, resulting in a drop towards $2K. It is currently forming an ascending wedge pattern and consolidating near the lower boundary. A break below this could lead to a further decline towards $2K. However, if buying pressure increases, there could be a bullish rebound towards $2.6K. The funding rates in the perpetual futures market for Ethereum have been consistently declining, indicating a lack of buying interest from traders. This suggests a prevailing bearish sentiment and the potential for further price declines in the mid-term. It's important to note that negative funding rates can sometimes be an early signal of market recovery, but this is dependent on sufficient spot buying pressure. Without stronger demand from spot buyers, Ethereum's price may continue to be under pressure.

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