Ethereum has been on a nice run over the last few days, as the price is slowly but consistently moving higher. However, market participants should remain cautious, as there are still more obstacles for the cryptocurrency to form a persistent rally.
The Daily Chart
On the daily timeframe, the price has finally broken above the 50-day moving average, following weeks of testing and failing. Currently, the $1300 resistance area was broken to the upside, as the bullish momentum is not fading away.
In case of a confirmed breakout, the 200-day moving average, located around the $1400 mark, would be the next significant resistance level. A bullish breakout above the mentioned moving average would likely shift the sentiment to a more positive state, and a short-term uptrend would be highly probable.
However, there is still a chance for a bearish rejection which could cause the price to drop toward the $1000 area if the 50-day moving average, trending around the $1200 mark, fails to provide strong support.
The 4-Hour Chart
Looking at the 4-hour timeframe, more signs of concern are visible. Although the price has been rising rapidly over the recent days, it is yet to reach the $1350 resistance level. Its reaction to the mentioned level would indicate how the next few weeks would look for Ethereum and whether a recovery or another decline would occur.
The RSI indicator, which has been in the overbought area for a while, is also flashing a clear overbought signal, further improving the odds of a rejection and bearish reversal in the coming days. As a result, while the trend looks strongly bullish in this timeframe, some significant warning signals are pointing to a potential U-turn soon.
ETH Open Interest
2022 was a gruesome year for risk assets, especially in the crypto market. Ethereum has lost more than half of its value but has been relatively more resilient compared to Bitcoin lately, as it did not form a new lower low in the recent crash and may be bound to climb higher in the short term.
This chart demonstrates the ETH’s Open Interest, which is one of the most valuable metrics for futures market sentiment evaluation. The higher the value of OI, the higher the short-term volatility risk is anticipated in the market. Looking at the chart, Open Interest has been oscillating in a tight range lately without rising notably, indicating conservative behavior in the futures market.
This may be interpreted as a bullish sign, as less volatility would attract more investors back to the market and a spot buying pressure would likely lead to a more sustainable increase in price. While OI could change massively in a concise period, things are looking a lot safer for re-investing in the second-largest crypto coin than a few months ago.
The post ETH Stable Above $1300 But Can The Bulls Push Towards $1.4K Soon? (Ethereum Price Analysis) appeared first on CryptoPotato.