Ethereum’s bullish surge cools off – How much longer for $4k?

  • Ethereum is showing signs of consolidation amid ETF hype, indicating the lack of strong market direction.
  • General sentiment and technical indicators suggest that the consolidation phase has already begun.

After reaching the peak of spot ETF hype, Ethereum’s (ETH) rally appears to be slowing down by the minute. What was a 17% increase last week became less than 1% this week. Is the second largest cryptocurrency in the world at risk of consolidation?

Let’s take a look.

Ethereum derivatives data presents mixed sentiment, potentially indicating a slowdown in Ethereum’s rally. The increase in trading volume by 10.32% and open interest by 1.19% shows that traders are still very active with ETH.

Source: Coinglass

Looking at the long/short ratios, we see a predominance of long positions over short positions, indicating that despite the slowdown, many traders are still betting on Ethereum to rise as ETFs prepare to start trading the next week.

Source: Coinglass

Ether’s current liquidation pattern could indicate that despite the prevailing bullish sentiment, ETH is facing increased market caution. This usually precedes short-term consolidation, as Bitcoin showed after hitting all-time highs earlier this year.

The ETH/USDt chart shows even more incoming consolidation. After peaking around $3,980, Ethereum faced resistance and has since formed a consolidation pattern, generally fluctuating between $3,770 and $3,900.

Source: TradingView

The relative strength index (RSI) currently reads 51.43, indicating neutral momentum that aligns with the ongoing price consolidation.

This suggests neither overbought nor oversold conditions, which does not provide any strong bias towards bullish or bearish momentum in the near term.

From a technical analysis perspective, the key support level to watch is around $3,770, marked by several hits over the past few days that have prevented further declines.

On the upside, resistance lies near $4,000, where Ethereum is struggling to sustain upward moves.

Source: Santiment

At the same time, a notable spike in social dominance suggests a recent increase in discussion or interest around Ethereum, which is clearly driven by ETF hype.

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The moving averages, however, show a long-term downward trend, predicting an overall decline in the level of interest in Ethereum.

Overall, Ethereum is not at risk of consolidation. This is already consolidating.

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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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