Crypto analysis:
Ethereum (ETH) is currently trading around $2,500 after a week of sideways movement. The price has been consolidating for several days, showing no clear direction. This comes after ETH dropped from a high of over $2,700. On-chain activity for Ethereum has remained quiet during this time, reflecting a cautious mood in the market.
One major reason for this calm is global uncertainty, especially due to tensions in the Middle East. The U.S. Federal Reserve recently decided to keep interest rates unchanged, and fears of a renewed conflict in the Middle East are making investors more careful. These geopolitical risks are affecting the crypto market, including Ethereum, as investors move towards safer assets.
Ethereum-related ETFs in the U.S. have also seen a drop in investment. In just two days, only $32 million flowed into Ethereum ETFs, a big drop from the $170 million recorded during the same period last week. Mixed exchange flows—both in and out—also signal that investors are unsure about the next move. Futures open interest has remained flat, showing a lack of strong positions on either side.
Some investors are preparing for a possible drop in Ethereum’s price. On Deribit, a large number of put options have been purchased with strike prices between $2,450 and $2,500. This shows that many traders believe Ethereum could fall further, and they are buying insurance in case that happens. The current market strategy is more focused on reducing risk rather than making big bets.
Technical analysis also shows a mixed picture. Ethereum is holding above the $2,450 level, which matches the 38.2% Fibonacci retracement level. However, the price needs to move above the 50-day Exponential Moving Average (EMA) to push higher toward the $2,850 resistance. If that happens, a stronger uptrend may begin. Without enough trading volume and positive market sentiment, however, this move could be difficult.
On the flip side, if Ethereum drops below the current support, the next possible target could be between $2,260 and $2,110. Indicators like the Relative Strength Index (RSI) and the Stochastic Oscillator are both weak and pointing sideways, suggesting that bearish momentum still exists. Overall, the Ethereum price prediction remains cautious, with both upside and downside possibilities depending on market developments and global events.
0 Comments