Ethereum (ETH) declined 1.89% today, but analysts highlight that the leading altcoin continues to defend key support levels. Despite recent short-term liquidations and range trading, Ethereum’s construct remains indicative of a bullish setup with longer-term objectives stretching past $5,500 if the momentum continues.
Ethereum is currently trading at $4,546.07, a 1.89% decline in the past 24 hours. Its current market capitalization is $548.74 billion, but analysts indicate that the ongoing pullback could merely be a phase within a larger bullish trend, not a reversal in momentum.
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ETH is showing bullish strength after a sharp reaction from the key support zone between $4,156 and $3,895. Analysts highlight that this rebound has validated the ongoing bullish setup, signaling investor confidence is intact despite recent volatility.
Once a double correction was completed, ETH rose above its previous high, which confirmed the next step in its upward trend. Market analysts now project Ethereum’s near-term goals around $5,501-$5,840 in case bullish sentiment prevails.
With buyers regaining control, ETH may continue its upswing while reversing towards even higher resistance levels, making its way towards a major price rise in the weeks ahead.
The derivatives market has also been active, as $69.9 million in futures positions were liquidated over 24 hours according to Coinglass records. This included $30.97 million in long positions and $38.95 million in short positions, highlighting the intense battle between buyers and sellers.
After hitting a new all-time high on Sunday, Ethereum has largely stayed within the $4,100 to $4,900 range for two weeks. The sideways movement has formed a bullish pennant pattern, which is typically recognized as a sign of a potential breakout.
Technically, the Relative Strength Index (RSI) remains in a zone between neutral and overbought areas while unable to remain considerably above its moving average. That is an indicator of a cautious market sentiment, but still in the bullish zone.
Further up, if Ethereum surpasses $5,000 and can transform the level into support, it can trigger another strong upswing. On the downside, the 14-day Exponential Moving Average (EMA) continues to act as crucial support, with ETH staying above it for over three consecutive days since July.
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