Key Points
- Ethereum’s price has been trending within a horizontal channel since 20th May, indicating a balance of buying and selling pressures.
- Despite the sideways price movement, Ethereum’s futures market activity has grown, with a 42% increase in open interest since 20th May.
Ethereum’s Price Trend
For the past ten days, Ethereum has been trending within a defined range. This trend is the result of a balance between buying and selling pressures, preventing a strong price movement in either direction.
This type of price movement is known as a horizontal channel. The upper line of the channel forms resistance, while the lower line forms support. For Ethereum, resistance is at $3962, and support is at $3638.
Market Indicators and Futures Trading
Market indicators such as the Relative Strength Index (RSI) and Money Flow Index (MFI) have been flat, suggesting no strong buying or selling pressure. The RSI is currently at 64.92, and the MFI is at 63.74.
The Average True Range (ATR), a measure of market volatility, has been declining, confirming the price consolidation. This suggests that Ethereum’s price is trending within a range without significant upward or downward movements.
Despite the sideways price movement, Ethereum’s futures market activity has been growing. Open interest in Ethereum futures has increased by 42% since 20th May. This increase indicates more traders are entering the market to open new trading positions. The positive funding rate across cryptocurrency exchanges suggests that there is more demand for long positions than short ones.
