Ethereum is currently experiencing a bearish market structure on the daily chart, but it is still aiming for the next key resistance zone. The volume has been below average in recent days, indicating a possible retracement next week.
Ethereum has managed to climb back above the $3k level, with the former resistance zone of $3.1k now acting as support. The balance between whale deposits and exchange reserves shows that recent deposits have been minimal compared to outflows in the past two months. Additionally, the Ethereum network’s gas fee has reached lows not seen since May, suggesting reduced network activity and slower growth.
Despite the breakout, volume indicators remain ambivalent. The daily chart shows a bearish market structure and momentum, with notable capital flow out of the market. The OBV has struggled to show an uptrend in buying volume over the past ten days, indicating weak volume that does not signal bullish strength. The daily RSI sits at 45, signaling bearish momentum but has been creeping higher over the past week. More volume entering the market may be needed for a significant upward move.
The liquidation heatmap indicates that the next resistance level for Ethereum could be in the $3.5k-$3.7k range, with a previous liquidity pool at $2.7k-$2.8k still attractive. The Open Interest has increased alongside prices, and the sentiment remains strongly bullish. If the trend continues, Ethereum could potentially move towards $3.6k.
In conclusion, Ethereum is facing a bearish market structure but is still targeting key resistance levels. The volume remains weak, signaling a possible retracement in the coming week. It is important to note that this information is based on the writer’s opinion and does not constitute financial advice.