The ETHUSD pair has recently approached resistance at $3,175 and is likely to pull back from this level to retest support at $2,840. On the hourly timeframe, an unclosed price gap between two green candles, spanning from $2,840 to $2,980, is visible. This area appears to be the next technical target for bears.
Open interest in Ethereum futures remains elevated, indicating high leverage and active trader participation. Funding rates are mostly positive, signaling bulls’ dominance and a preponderance of long positions. The current market setup heightens the risk of a long squeeze or cascading liquidations in case the price plummets.
The long-term outlook for ETH is still rather positive due to regular protocol upgrades, including the upcoming Fusaka hard fork. However, macroeconomic headwinds and uncertainty over Bitcoin are currently capping Ethereum’s rally. Meanwhile, whales keep accumulating the asset within the $2,950–$3,050 range.
Trading volumes remain significant, although they have declined slightly from recent peaks. This dynamic, combined with ongoing price consolidation, may reflect uncertainty ahead of the next major move.
Thus, the slow and cautious advance currently observed in the market could be wiped out by another wave of downward movement. Such a decline would ultimately lead to a more optimal equilibrium between sellers and buyers of Ethereum.
The overall recommendation is to sell ETHUSD. Profits should be taken at the level of $2,840. Stop Loss could be set at $3,270.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
