Ethereum

bullish

Daily

<p>Ethereum’s recent price action shows signs of a short-term recovery after hitting the critical support level of $2.1K.</p>
<p>However, despite this brief uptick, the broader market remains deeply bearish, with expectations pointing toward a period of consolidation before the next significant move.</p>
<h2 id="technical-analysis">Technical Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<h3 id="the-daily-chart">The Daily Chart</h3>
<p>On the daily chart, ETH encountered strong resistance around $2.8K, leading to a rejection and subsequent downward movement. After this sustained decline, the asset found support at the crucial $2.1K level, which is also the previous daily swing low.</p>
<p>Upon reaching this support, bearish momentum faded, and Ethereum experienced a slight rebound, signaling the potential for a short-term recovery. Furthermore, a bullish divergence between price and the RSI suggests an increase in buying interest, which raises the likelihood of a short-term bullish correction.</p>
<p>Given the presence of buying pressure at $2.1K and the divergence, Ethereum is likely to enter a consolidation phase, with the possibility of slight bullish upticks toward the $2.5K resistance level.<a href="https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-2-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-359147" src="https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-2-scaled.jpg" alt="" width="2560" height="1307" srcset="https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-2-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-2-300x153.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-2-1024x523.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-2-768x392.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-2-1536x784.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-2-2048x1046.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-2-50x26.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<h3 id="the-4-hour-chart">The 4-Hour Chart</h3>
<p>On the 4-hour chart, Ethereum faced strong rejection from the resistance zone between the 0.5 ($2.6K) and 0.618 ($2.7K) Fibonacci levels. This rejection, driven by increased selling pressure, pushed the asset to the $2.1K support region. The bullish divergence between the price and RSI is more prominent in this timeframe, further indicating a rise in buying pressure.</p>
<p>Ethereum is undergoing a mild bullish retracement, easing the downward pressure. Continuing this recovery could push the price toward the $2.5K level in the short term. However, if Ethereum breaks below the crucial $2.1K support, it could trigger a sell-off, potentially leading to a further drop toward the $1.8K region.<a href="https://cryptopotato.com/wp-content/uploads/2024/09/ETH-D-2-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"></a></p>
<h2 id="onchain-analysis">Onchain Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<p>Analyzing the futures market can offer key insights into Ethereum’s price action, especially during downtrends. The ETH/USDT Binance liquidation heatmap visually represents prominent liquidity pools, which often serve as price targets for larger market players or “smart money.”</p>
<p>According to the heatmap, the $2.5K level holds the highest concentration of liquidity near the current price. Liquidity acts like a magnet for price action, so this zone becomes a critical short-term target.</p>
<p>A bullish retracement toward this level is highly probable, driven by the market’s tendency to seek out these liquidity pools. Consequently, the $2.5K price range represents a pivotal area to watch, as its strength could determine the continuation of Ethereum’s current upward movement.<a href="https://cryptopotato.com/wp-content/uploads/2024/09/Binance_ETH_USDT_Liquidation_Heatmap3_day_2024_09_10_11_19_27-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-359148" src="https://cryptopotato.com/wp-content/uploads/2024/09/Binance_ETH_USDT_Liquidation_Heatmap3_day_2024_09_10_11_19_27-scaled.jpg" alt="" width="2560" height="1877" srcset="https://cryptopotato.com/wp-content/uploads/2024/09/Binance_ETH_USDT_Liquidation_Heatmap3_day_2024_09_10_11_19_27-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/09/Binance_ETH_USDT_Liquidation_Heatmap3_day_2024_09_10_11_19_27-300x220.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/09/Binance_ETH_USDT_Liquidation_Heatmap3_day_2024_09_10_11_19_27-1024x751.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/09/Binance_ETH_USDT_Liquidation_Heatmap3_day_2024_09_10_11_19_27-768x563.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/09/Binance_ETH_USDT_Liquidation_Heatmap3_day_2024_09_10_11_19_27-1536x1126.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/09/Binance_ETH_USDT_Liquidation_Heatmap3_day_2024_09_10_11_19_27-2048x1502.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/09/Binance_ETH_USDT_Liquidation_Heatmap3_day_2024_09_10_11_19_27-50x37.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<p>The post <a href="https://cryptopotato.com/ethereum-price-analysis-is-eth-on-its-way-to-2-5k-or-danger-still-looms/" rel="noopener noreferrer nofollow">Ethereum Price Analysis: Is ETH on its Way to $2.5K or Danger Still Looms?</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

Ethereum Price Analysis: Is ETH on its Way to $2.5K or Danger Still Looms?

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