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Ethereum goes back above $3,000: Crypto analysis of April 24, 2024.

Wed 24 Apr 2024 ▪ 5 min of reading ▪ by Family Trading Partnership
Investissement

Ethereum rebounds in strength after a drop bringing it below $3,000. Let’s examine together the future outlook for ETH.

Ethereum Crypto

Ethereum’s Situation (ETH)

After marking a peak just above $4,000, the price of Ethereum experienced a decrease that brought it down to $3,000. It’s at this price level that the cryptocurrency has formed a range between this and $3,700. Unfortunately, this range was broken downwards, leading to a fall in Ethereum down to $2,865. Consequently, its price seems to be forming a short-term bearish trend. However, at the time of writing this article, an Ether is worth close to $3,250. This demonstrates buying strength ready to counter this new bearish momentum. It is interesting to note that the price of Ethereum is about to reject or regain its former support at $3,300.

Nevertheless, Ethereum’s underlying trend remains bullish. Yet, a return of Ethereum above its 50-day moving average would be more reassuring, as would a return of the bullish momentum, which would dismiss the possibility of a more profound reversal.

ETH/USD Chart (1D)
ETH/USD Chart (1D)

The current technical analysis was performed in collaboration with Elie FT, an investor and trader by passion in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Lives, educational content, and mutual assistance around financial markets in a professional and warm atmosphere.

Focus on Derivatives (ETHUSDT)

The open interest on ETH/USDT contracts has decreased by more than 29% before stabilizing. This equilibrium occurred alongside insignificant liquidations and a subtle increase in its underlier. Regarding the funding rates, we can observe that they fluctuate between positive and negative. This indicates that the ETH/USDT contracts are aligned with the real price of Ethereum. Thus, all these elements demonstrate a balance between buyers and sellers on the perpetual ETH/USDT contracts.

Open Interest / Liquidations & Funding rate ETH/USD
Open Interest / Liquidations & Funding rate ETH/USD

The heatmap of the last month reveals that the ETH/USDT contracts have passed through a significant liquidation zone, located between $2,300 and $2,200. There seems to be a persistent buyer interest, suggesting the continuation of the movement. Currently, the nearest and most significant liquidation zone is above the current price, specifically around $3,500. Higher up, there is a zone at $3,800 and at the peak, one at $4,100. To identify the notable zone located below, it will be necessary to delve deeper. We can particularly notice a liquidation zone between $2,800 and $2,700. The approach of the price towards these levels could trigger a mass execution of orders, thus increasing the risk of a period of heightened volatility for Ethereum. These areas therefore represent a potential critical point of interest for investors.

ETH/USDT Liquidation Heatmap ( 3 months)
ETH/USDT Liquidation Heatmap ( 3 months)

Possible scenarios for Ethereum’s price (ETH)

If the price of Ethereum maintains above $2,865, we could anticipate a return to $3,700. The next resistance to take into account, if the bullish movement continues, would be around $4,000. At this point, this would represent an increase of over +25%.

If the price of Ethereum fails to remain above $2,865, we could consider a return to around $2,700. The next support to consider, if the bearish movement continues, would be within a price range around $2,400 and $2,500. At this stage, this would represent a drop close to -26%.

Conclusion

Despite the recent decreases, the recovery of higher price levels indicates a sustained demand for Ethereum. The cryptocurrency’s ability to stabilize and regain its previous supports will be crucial to demonstrate its resilience in the face of market fluctuations. Thus, it will be vital to closely observe the price’s reaction to various key levels to confirm or invalidate the current hypotheses. It is also important to remain alert to potential “fake outs” and market “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also move rapidly due to other more fundamental factors.

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Family Trading

Family Trading est une Communauté de traders a compte propre active depuis 2017 offrant Lives, contenus éducatifs et entraides autour des marchés financiers dont celui des cryptomonnaies avec à ses côtés Elie FT, investisseur et trader de passion sur le marché crypto.

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