Ethereum’s price has been trapped in a tight range recently, showing little intent to move significantly to either side. However, changes could be expected shortly.

Technical Analysis

By: Edris

The Daily Chart

On the daily timeframe, the price has been oscillating between the 50-day moving average located around the $1900 mark and the $1800 static support level, during the past 7 days.

From a classical PA point of view, the market is likely to reach lower levels, as it has made a lower high and a lower low recently. In this case, $1800 could break, and ETH could test the critical 200-day moving average, which is trending around the $1600 level.

On the other hand, if ETH climbs above the 50-day moving average, it would likely rally higher and eventually test the $2200 resistance area in the short term.

The 4-Hour Chart

Looking at the 4-hour chart, it is evident that the price has formed a large falling wedge pattern below the $2000 mark. A breakout above this pattern would be a classical continuation pattern, which would probably result in a run toward the $2200 resistance zone.

Even so, the price still has a long way to reach the higher boundary of the pattern, as it is currently testing the $1800 support area. The RSI indicator also provides minimal insight, as it has been running relatively flat around the 50% mark, pointing to an equilibrium in momentum.

Sentiment Analysis

Ethereum Funding Rates

Ethereum’s price was rejected below the $2,000 mark over the last few weeks and has been consolidating ever since. The indecisiveness on the chart can also be witnessed by evaluating the futures market sentiment.

This chart demonstrates the funding rates metric, which indicates whether the futures market sentiment is relatively bullish or bearish. Positive values are associated with bullish market sentiment, while n