Ethereum has undergone a strong correction after peaking close to USD 1,350 last week. The cryptocurrency is currently trading at $ 1,050, but dropped to $ 950 on Monday due to an influx of selling pressure.
During the decline, funding rates of the ETH futures markets became extremely overloaded. In some cases, there were holders of long positions who paid more than 0.15% every eight hours to keep their positions open. This extremely high funding rate in the Ethereum futures market indicated that buyers had overused.
The cryptocurrency has since rebounded and bounced back to $ 1,050, although it rose to $ 1,130 on Tuesday.
This is what analysts believe is the next step for Ethereum after this volatility.
Ethereum must contain $ 700
Crypto asset analyst Michael Van De Poppe says Ethereum hit a level of significant interest, valued at $ 900, during the recent correction. While the cryptocurrency remains above that support level, Van De Poppe says all eyes should be on $ 700, where Ethereum could catch a bid after the smashing correction:
“#Ethereum the first level of interest here has reached around $ 900. It is looking for a new higher low after this higher high, which is natural. Also look at the $ 700 region. Once that correction is over, $ ETH is ready for $ 2000 +. “
If Ethereum manages to hold onto these key levels, he explained, the cryptocurrency will likely skyrocket to new all-time highs of over $ 2,000.
Ethereum’s previous all-time high is USD 1,450, in early January 2018, after the Bitcoin correction that occurred in late 2017.
Chart of ETH's price action over the past few years with an analysis by crypto trader Michael Van de Poppe (@CryptoMichNL on Twitter). Source: ETHUSD from TradingView.com
Macro trend still bullish
Despite short-term trends, other analysts remain optimistic about Ethereum from a macro standpoint.
One trader noted that the cryptocurrency is reaching a significant level of support from a medium to long-term perspective and thus is likely to maintain its upward trend:
“The macro structure looks good so far and the recovery looks good from this important support region. Now is the time to see if this level of previous support will now turn into resistance. It’s pretty important here that both pairs get higher on LTF. “
There are expectations that Ethereum will receive an offer in the coming days due to the huge retail interest in the cryptocurrency.
Yesterday, analysts on Twitter noted that search interest in the search term “Ethereum” has hit a new record. At the same time, a PayPal-affiliated exchange has seen an influx in demand for the second-largest cryptocurrency.
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Growing
Featured Image from Unsplash Chart from TradingView.com Price Tags: ethusd, ethbtc Ethereum Just Hit a Key Support Level: Here's the Next Level to Watch