What to know:
- Ethereum price holds above the crucial $1,850 support, keeping the path open toward the $2,060 resistance level.
- Analyst says ETH could rebound to $2,060 if buyers successfully defend the current support zone.
- Open interest fell 1.50% to $27.34B, while trading volume climbed 7.78% to $37.07B, signaling active market participation.
Ethereum price saw bearish pressure on July 24, though technical signs point to further upside potential for the cryptocurrency if the price manages to stay above the significant support zone. Investors and analysts are paying attention to the price behavior at $1,850, which is considered critical for ETH at the moment.
At the time of writing, ETH is trading at $1,891.58, down 1.13% over the last 24 hours. ETH recorded $19.26 billion in daily trading volume, while its market capitalization stood at $228.90 billion. Although the price slipped slightly, Ethereum continues to trade above an important technical support zone that many analysts believe could determine its next move.
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Ethereum Price Rebounds From Channel Support
A well-known crypto analyst, Ali Martinez, has issued an update on July 24 regarding his technical analysis of Ethereum. The update indicates that Ethereum rebounded after testing its lower price channel line recently.
He said that as long as Ethereum price is trading above $1,850, there would be an attempt at a rebound to the upper limit of the channel, where $2,060 would become the new level to be targeted by the asset. But any breakdown from the support level will make the technical picture of the asset weaker.
Additionally, the chart indicates that Ethereum price is still adhering to its trading channel limits, and the upcoming days will be crucial in determining whether the current rally will turn into a recovery.
Derivatives Market Shows Mixed Signals
The derivatives market of Ethereum showed a balanced scenario even with the recent price drop.
Open interest was down 1.50% at $27.34 billion, suggesting that there had been some liquidation of leveraged trades with the recent market action. The open interest decline usually suggests decreased speculation, particularly with short-term price falls.
However, trading volume also rose by 7.78% to $37.07 billion, indicating that market participation was high. When trading volume is rising, but open interest is falling, this may be an indication that investors are unwinding their positions, but there are still new players in the market.
Another closely followed index was the OI-weighted funding rate, which was steady around 0.0005%. This virtually zero funding rate is indicative of the market being perfectly balanced, in which there is no significant premium for the longs or shorts. Simply put, buyers and sellers are evenly matched.
Can Ethereum Reach $2,060 After Holding Key Support?
The next couple of trade sessions could prove to be crucial in deciding the near-term trend of Ethereum price. Investors would see if the buyers manage to hold above the $1,850 mark while keeping up high trade volume.
In case the support holds, there could be a gradual move towards the resistance at $2,060, identified by Ali Martinez. But in case the sellers get stronger and break the support, then the focus could be on the lower support levels.
Right now, the technical structure of Ethereum holds firm, but there is a need for confirmation from strong price action and buyer interest for recovery to be put into effect.
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