Ethereum (ETH) is currently grappling with the challenge of gaining bullish momentum, as reported by Cryptonary. While ETH shares similarities with Bitcoin (BTC) in terms of mechanics, it has recently lagged slightly behind in terms of price movement, sparking concerns among traders and investors.
One notable metric signaling the struggle for bullish dominance is ETH’s Open Interest, which has shown a modest increase but remains notably low compared to historical levels. The question on everyone’s mind now is whether it’s time to cut Ethereum loose or if the digital asset will manage to break free from its current predicament.
Delving into deeper insights, the Funding Rate has seen a noteworthy uptick through Wednesday morning, surpassing 0.016%. This increase is fostering a growing bias among traders, indicating a preference for Long positions. This development could potentially influence the market sentiment and contribute to either a resurgence or further downturn for ETH.
Taking a closer look at technical analysis, analysts suggest that Ethereum is at a critical juncture. The digital currency needs to surpass its uptrend line to regain bullish momentum. Currently bouncing from the horizontal support level of $2,130, which was previously a major horizontal resistance, ETH is now encountering resistance at the underside of the uptrend line.
If ETH fails to reclaim the uptrend line, analysts predict a potential downside, with a retest of the $2,130 support level. On the other hand, a successful reclamation of the uptrend line could pave the way for a move toward the main horizontal resistance at $2,340.
Notably, the Relative Strength Index (RSI) has reset on all major timeframes, and analysts express confidence that RSI is not a cause for concern regarding ETH at this juncture.
A Relief Potainal Rally For Ethereum
Cryptonary’s take on the situation remains cautiously optimistic. In their analysis earlier this week, they accurately predicted that ETH would seek a relief rally but encounter resistance at the underside of the uptrend line. Looking ahead, the key for ETH lies in reclaiming the uptrend line, with a failure potentially leading to a revisit of the $2,130 support level.
Despite the current challenges, Cryptonary maintains a positive and constructive stance on ETH. They express a willingness to continue Dollar-Cost Averaging (DCA) into ETH if the price drops below $2,130, showcasing confidence in the digital asset’s long-term prospects.
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