Ethereum notices a strong bullish bias on the charts, which is why $1680 is so important

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  • Ethereum has a bullish outlook, and a buying opportunity could emerge on a lower time frame of the market structure.
  • CVD was not encouraging, but other technical aspects and price action supported the upside.

Ethereum has benefited greatly from the recent weeks rally. The altcoin king managed to surpass the range that was established in November. It consolidated for a few days above the $1,500 mark.

Read the Ethereum price forecast 2023-24

At the time of writing, the $1600 level is acting as support. Another drop may provide a buying opportunity. Additional upside remains likely for Ethereum, and the $1,700 and $2,000 levels are something to watch out for.

$1680 saw a slight reaction, but dips will be a buy

Source: ETH/USDT on TradingView

The previous high to $1,680 in early November was followed by a wave of aggressive selling. This confirmed the importance of the area between $1630 and $1680 on the chart. In particular, a session near the $1680 level can be seen as a sign of a possible continuation of the bullish trend.

In the south, there was a glitch in the rolls from $1,564 to $1,617. The lower time frame charts also showed short-term bearish momentum, with the daily time frame RSI forming a bearish divergence, although the momentum remained strong in favor of the bulls. CMF stopped at +0.22, which indicates a significant inflow of capital into the market.

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It did not indicate a trend reversal but indicated a possibility of a decline to $1617 or $1564. Another setback was also possible. Therefore, traders can look forward to buying a retest of $1564, and target the bearish order block at 1700 as a profit-taking area. The Fibonacci Extension Levels (yellow) met with two major bearish demand blocks above in the price chart.

Closing the daily session below $1485 will invalidate the bullish notion.

Opening interest has paused but has risen impressively over the past week

Ethereum is trying to break above $1,680 as the rally continues

Source: Coinalyze

As of January 14th, both the price and the open rate have made significant gains. This showed strong bullish sentiment in the market. Spot CVD also posted steady gains during January, indicating steady buying pressure. However, she has gone back to a flatter selfie over the past week. If this changes, it will be another indication of an uptrend.

The expected funding rate weighted by open interest across the exchanges was also positive.

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