Can ETH survive its current bearish trend?

[CryptoChamp]

Ethereum's recent price movement indicates ongoing struggles as it battles significant resistance levels and a bearish sentiment in the market. Let’s break down the key points driving the current trend.

Price Consolidation After a Dip

• Ethereum is currently trading at $2,293.03, reflecting a slight gain of +0.35%.
• After dipping below $2,320, ETH hit a low of $2,253 before attempting a recovery above $2,285.
• This recovery has taken ETH to the 23.6% Fibonacci retracement level, a key technical marker calculated from the high of $2,466 down to the low of $2,253.

Resistance Levels Hold Strong

• Despite the bounce, Ethereum is still trading below the $2,310 mark and remains under the 100-hour Simple Moving Average (SMA), highlighting its ongoing challenges.
• Immediate resistance is forming at $2,300, making upward movement difficult.
• Stronger resistance sits around $2,340, with another major barrier at $2,360, aligning with the 50% Fibonacci retracement level of the recent decline.

Key Technical Trendlines

• A bearish trendline is developing at the $2,360 resistance level, which is preventing any major breakout.
• If ETH manages to break above $2,360, we could see a potential surge towards $2,420 and possibly even $2,465.

Read Ethereum price prediction Will $ETH Hit $5,000?: 

Bearish Funding Rates Raise Concerns

• ShayanBTC pointed out a troubling trend with Ethereum’s funding rates in perpetual futures, which are currently hitting new lows in 2024.
• Funding rates indicate the balance between long and short positions in futures markets. Rising rates show traders favoring long positions, while falling rates signal increased short-selling pressure.
• With funding rates declining, short sellers are dominating the market, betting on further price declines.

Weak Buying Interest

• The 50-day moving average for Ethereum’s funding rates has been trending down for weeks, signaling deep bearish sentiment.
• There’s little interest from buyers, as fewer traders are willing to place purchase orders, adding to the downward pressure.
• Without renewed demand from perpetual futures, Ethereum may struggle to find support, and further declines could be on the horizon.

What’s Next for Ethereum?

• For Ethereum to recover, the market needs a shift in demand, particularly in the futures market, signaling renewed interest in buying.
• Without this, Ethereum could continue to face downward pressure, with critical resistance levels preventing any significant price recovery.

Ethereum is in a challenging phase, with significant resistance ahead and bearish sentiment driven by short-sellers. Keep an eye on key resistance levels and funding rate trends to gauge the next potential move