The second-largest crypto, Ethereum, with a share of over $213 billion in market capitalization, has an implicit price action. The bears are leaving no stone unturned to halt the ongoing ascending trend. The bulls are also making every effort to hold the price above the gains. In the meantime, the ETH price is defending the support wisely, but the rising selling pressure could cause notable hindrances.
The ETH price has been violently breaking past resistance levels, aiming to validate a long-term bullish trend. In the daily time frame, the ETH price has been steadily rebounding from the $1550 support level and the lower boundary of the substantial descending channel. Both the $1750 level and the 200-day MA are positioned around the $1800 mark, which has been decisively breached on the upside.
The market is presently on track to test the upper trendline of the channel, and if a bullish breakout occurs, then the ETH price is likely to trade above $2000 again. The latest upswing enabled the price to pierce through the pivotal resistance at $1750, but the ongoing retest is encountering challenges in advancing further. The overbought signal indicated by the relative strength index is the retracement back to $1750. After a relentless rally, the markets could now be due for a correction or consolidation phase.
Besides, the Ethereum funding rates, which are considered the most useful futures market sentiment indicators, have been positive for some time now. Positive rates indicate bullish sentiment as the traders are executing the orders more aggressively. As the metric spiked massively in recent times, a probable correction or even a reversal due to a long liquidation might cause a small pullback.
Therefore, the upcoming trade could be extremely exposed, and hence a flash crash could make its way out soon for the Ethereum (ETH) price.
Source: coinpedia.org