Crypto Potato 2025-03-20 14:18:28

Ethereum Price Analysis: Is ETH Ready for a Decisive Break Above $2K?

Ethereum has been going through a terrible period of depreciation, as the price has been consistently making lower highs and lows. Yet, things might just be about to change. Technical Analysis By Edris Derakhshi The Daily Chart On the daily chart, ETH has been in a strong downtrend, breaking below the critical 200-day moving average and losing multiple key support zones. Prices have recently bounced from the $1,900 demand zone but face resistance near the $2,100 level. The 200 DMA, currently above $2,800, adds additional overhead pressure, making recovery attempts challenging. Meanwhile, the RSI is climbing from oversold territory, indicating potential short-term relief. However, unless ETH regains the $2,400 area and the 200-day moving average, the broader trend remains bearish. The 4-Hour Chart The 4-hour chart shows ETH breaking out of a descending trendline, leading to a relief rally above $2,000. However, the recent rejection by $2,100 combined with a declining RSI suggests fading bullish momentum. While immediate support lies around $1,900, a failure to hold this level could cause ETH to drop to the $1,800 area and even lower. On the other hand, for buyers to gain control, the price needs to push decisively above $2,100 and flip it into support. Sentiment Analysis By Edris Derakhshi (TradingRage) Open Interest Ethereum’s open interest across all exchanges has sharply declined from its peak above $20B to around $12B, in tandem with the price dropping to $1,900. The falling open interest signals mass liquidation and reduced speculative positioning, which often accompanies periods of high volatility. While a drop in open interest after aggressive price moves can sometimes flush out weak hands and set the stage for a reversal, the current trend shows no signs of stabilization yet. The sustained downtrend in both price and open interest could fuel further bearishness unless a clear base forms and open interest begins to rebuild in alignment with price recovery. The post Ethereum Price Analysis: Is ETH Ready for a Decisive Break Above $2K? appeared first on CryptoPotato .