Key Insights
- •ETH rejected from $3K resistance, now testing $2.8K support for possible short-term bounce.
- •MACD remains bearish and RSI near oversold, signaling weak momentum but possible price base.
- •Futures open interest drops to $35.84B, showing lower leverage after recent price decline.
Ethereum tested the $2,950 to $3,000 resistance area but failed to break through. The price has since moved down and was trading around $2,871.77. It gained 2.8% in the last 24 hours, though it remains 6.1% lower over the past 7 days.
The chart marks the resistance zone in red, with ETH currently trading below it. The next support level sits near $2,800, which has held as support in past pullbacks.
“If the US stock market shows momentum, Ethereum could bounce back from the $2,800 support zone.”
ETH rejected from $3K resistance, now testing $2.8K support for possible short-term bounce. MACD remains bearish and RSI near oversold, signaling weak momentum but possible price base. Futures open interest drops to $35.84B, showing lower leverage after recent price decline.
— Ted (@TedPillows) May 13, 2024
The area remains a key level to watch in the short term.
Momentum Indicators Remain Weak
ETH was showing a weekly gain of 3.2%, with price at $2,892.30, just above the $2,800 zone. This level acted as support in previous cycles and could serve the same role again.
Momentum remains weak based on current indicators. The MACD line is well below the signal line, with a negative reading of -221.09. This reflects ongoing pressure from sellers, though the pace has slowed. The RSI stands at 40.92, near the oversold threshold, which has marked short-term bottoms before.
Futures Activity Drops but Remains Active
Ethereum futures open interest is now at $35.84 billion, based on Coinglass data. This is a large decrease from earlier peaks above $60 billion, when ETH was trading near $4,000. The drop reflects a lower level of leverage and reduced speculative exposure.
Despite the decline, open interest remains above levels seen earlier this year. This shows that while trading activity has slowed, it has not disappeared. A steady price near $2,800, combined with rising open interest, could mark the start of new positioning.
Support Levels in Focus
The $2,800 support zone is key in the current setup. If it holds, ETH could move back toward the $2,950 to $3,000 area. A break above that would suggest stronger demand returning. If the price falls below $2,800, the next support areas are around $2,650 and $2,370.