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Ethereum buyers are struggling to propel the price above the crucial $2K resistance area. Nevertheless, the price is currently trading in a significant range limited by the dynamic support provided by that level and the 100-day EMA.
technical analysis
By sleeping
daily chart
On June 21, Ethereum managed to surpass the 100-day EMA and continued its prevailing uptrend after a pullback, eventually reaching the critical resistance area of $2K. Nevertheless, the bullish momentum faded as selling pressure increased around this level, resulting in minor rejections.
Nevertheless, the price found support at the 100-day EMA, which is currently at $1,867, which has prevented further losses in the past few weeks. A breakout from this critical price range will likely play a key role in determining Ethereum’s overall prospects in the medium-term.
4-hour chart
Analyzing the 4-hour time frame, a bearish trend line is becoming evident for Ethereum as the price declined below its multi-week upper trend line after facing rejection at the $2K resistance area. The subsequent pullback confirmed the breakout.
Currently, ETH is range bound between two important price levels: the stable resistance at $2K and the crucial support at $1,850. This suggests the possibility of a range-bound market phase characterized by the absence of consolidation candles and a strong trend.
The price is expected to remain within this range until a breakout, which reveals the future direction of Ethereum.
on-chain analysis
By sleeping
The provided chart displays the estimated leverage ratio in correlation with the price of ETH. This metric estimates the average leverage employed by participants in the futures market. Generally, higher values indicate that more investors are taking on more leverage and risk in the derivatives market.
In recent weeks, the estimated leverage ratio has seen a slight increase, indicating that the futures market is heating up due to the recent bullish price trend. However, it has not yet reached the relevant level. Nevertheless, caution is advised if the metric continues to rise as it could lead to a short- or long-squeeze event.
In such a scenario, the price of Ethereum may experience sudden and significant fluctuations.
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cryptocurrency chart by Tradingview.
