ETH price today Ethereum is today range-bound, stuck between its 100-day and 200-day moving averages, as it heads through an extremely important crossroads. This recent rally faced strong resistance at a bearish order block ($2625-$2670). As expected, news of this rejection sent the price crashing down back towards the $2.5K support level. A definitive step out of this consolidation period is expected to determine the next big direction for the digital currency.
Key Support and Resistance Levels
The $2.5K level serves as a historically significant zone for Ethereum. As of late it recently broke above that important 200-day moving average (MA). This 200-day MA around $2.5K had acted as strong resistance in recent weeks, highlighting its importance as a critical level to watch. Ethereum’s price has since returned to retest this level, further adding weight to its importance.
ETH seems to be consolidating in a clear range of about $2.5K and $2.8K. A decisive break below this area will almost certainly lay the groundwork for the next major trend direction.
Funding Rate and Market Sentiment
Ethereum’s funding rate is still an important gauge of market sentiment in its increasingly popular futures market. For Ethereum to break above the critical $2.6K and $2.8K resistance zones, stronger demand must flow into the derivatives market. To Ethereum to clear these resistance levels, funding rates will have to continue rising to more zesty levels.
Market sentiment is definitely leaning toward a bullish breakout for Ethereum in the next few days. This is predicated on the ability of these buyers to continue the bullish run and push through the layers of resistance and supply at current levels.
Potential Scenarios
If Ethereum is unable to reclaim $2.5K support, further consolidation may ensue. This situation could even drive the ticket price down further, toward lower support levels. This would imply a breakdown of bullish sentiment and likely pave the way for more downside action.
