Ethereum price maintained its upward momentum on July 10 as sellers were holding strong above a critical support level, making investors more confident that the next rally is not far away.
At the time of writing, ETH is trading at $1,794.35, up 3.09% over the last 24 hours. The ETH recorded $17.08 billion in daily trading volume, while its market capitalization reached $216.79 billion, according to CoinMarketCap data.
Ethereum Price Signals More Upside
As reported by crypto analyst Ted, the Ethereum price remains stable at levels above the critical $1,750 point. In Ted’s opinion, such a development is rather good technically because increased demand in the spot market may allow Ethereum to move to the levels of $1,850 to $1,900.
Trading above key support levels usually boosts buyers’ confidence and minimizes risks of a strong pullback. In case of the breakthrough above the resistance levels for Ethereum, this may stimulate further purchases and reinforce the ongoing trend of recovery.
But it should be noted that in order to ensure a bigger breakout, Ethereum must maintain stable interest. If the price moves down and breaches the level of $1,750, the optimistic scenario will not be justified.
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Derivatives Market Points to Growing Confidence
Ethereum’s derivatives segment has also displayed improvement in sentiment, albeit not a great deal of short-term activity.
The open interest on Ethereum rose by 3.63% to reach $24.65 billion, indicating an inflow of funds into future contracts on Ethereum. The combination of rising open interest and the higher Ethereum price is seen as a good sign.
On the other hand, derivatives trading was reduced by 6.21% to $28.76 billion, which implies that although there have been increases in positions, short-term trades have been reduced.
The OI-weighted funding rate stayed above zero at 0.0042%, suggesting that there are still more bulls than bears. It is quite low, which means that traders feel confident about rising rates but are not overoptimistic.
What Comes Next for Ethereum Price?
The critical test for Ethereum price will come from how well it can be pushed to reach the $1,850-$1,900 resistance area, as pointed out by Ted. Breaking through this range would give more strength to the bulls.
Also, investors will be on the lookout for sustained increases in open interest along with prices and good funding rates. Should these factors keep getting better along with increased spot demand, the price of Ethereum may continue to rise over the next few weeks. Nevertheless, should the price fall below the support at $1,750, it may revert back to the lower levels of support once again.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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