Connect with us

Bitcoin

ETH/USD Price Analysis: Holds in Bear-Trap As Ethereum Futures Attract Investors Away From Bitcoin Futures

Published

on

Tomiwabold Olajide

  • ETH price has remained above initial supports, with the rising moving average (MA 200) keeping recent advances intact
  • ETH/USD pair stays on the back foot on Wednesday after a long-legged candlestick
  • The trend of significant investors migrating away from Bitcoin futures into Ethereum derivatives continues

The global cryptocurrency market value lost 0.55 percent to $2.28 trillion in 24 hours, with lead coins trading flat. Ethereum’s price had rallied towards the $3,700 barrier in the prior week and retreated slightly. So far, ETH price has remained above initial supports, with the rising moving average (MA 200) keeping recent advance intact. Its price holds in bear-trap under the $3,500 psychological zone and underpins near-term action. Nonetheless, ETH/USD pair is on the back foot on Wednesday after a long-legged candlestick in the day signaled that the rally had lost traction. Despite the recent rally in Bitcoin, significant investors migrating away from Bitcoin futures into Ethereum derivatives continues. The shift in investment to ETH has resulted in the ETH futures average value being higher than the current Ether market price attracting investors from Bitcoin futures. JPMorgan issued a note to customers, showing a “significant divergence in demand” from BTC futures to ETH futures.

Key Levels
Resistance Levels: $4,200, $4,000, $3,700
Support Levels: $3,200, $3,000, $2,800

ETH/USD Daily Chart: Ranging

ETH/USD 4-Hour Chart

In the prior session, the ETH/USD fell to $3,403. It is currently trading around $3,489, just below this week’s high of $3,625. A bullish flag pattern has formed on the pair, which is a good indicator. In addition, the daily moving average (MA 200) is a strong supporter. It may break out higher in the coming sessions and suggest a reversal of the downtrend from the $3,400 zone.

The near-term bias may favor bulls as long as the price action remains above the $3,200 support zone, which would keep hopes alive for a renewed assault on significant resistance levels such as the $3,700 barrier, $4,030 (Sept. 2021 high), and $4,384 (2021 all-time-high). There may be a possible decline and close below the $3,400 zone, which would complete the failed swing pattern on the daily chart.

ETH/USD 4-Hour Chart: Ranging

ETH/USD 4-Hour Chart

On the 4-hour chart, short-term traders have taken some chips off the table as the price has risen above $3,600. Before the bulls can expand higher, they must first clear the main hurdle at the $3,700 level. The Relative Strength Index beneath its midline 50 may limit their optimism for the time being. If a pullback occurs, the MA 50 will serve as a critical support level keeping the rebound on track. If it fails, the pair might fall to the support level of $3,200.

Before turning focus to the $4,000-$4,200 highs as seen on the time frame, more upside rises could retest the $3,700 critical mark. Higher, the $4,000 resistance level may draw attention next, as market action has previously stalled around this level, and a rally above that level might last until $4,384, the all-time May 2021 high. If the price continues to fall, the $3,200 support level could come into play before the $3,700 barrier.

Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

Image Credit: Shutterstock

The post ETH/USD Price Analysis: Holds in Bear-Trap As Ethereum Futures Attract Investors Away From Bitcoin Futures appeared first on Latest Crypto News.


ETH/USD Price Analysis: Holds in Bear-Trap As Ethereum Futures Attract Investors Away From Bitcoin Futures was first posted on October 13, 2021 at 12:28 pm.
©2021 "Latest Crypto News". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at info@kryptomoney.com
Continue Reading

Latest

Companies

%d bloggers like this: