Bitcoin and Ethereum Market Update

As Bitcoin reached $95,000 momentarily, the broader market recovery propelled the altcoin market segment to $1.24 trillion. With this recovery, the Ethereum price surged to nearly $2,550.

The overnight recovery of 13.62% in ETH challenged the center pivot level and marked a positive cycle within a falling channel pattern. Will this recovery in Ethereum reach the $3,000 psychological mark?

Ethereum Recovery Within Bearish Channel

In the daily chart, the ETH price action reveals a positive reversal within a falling channel pattern. The bullish recovery originates from the crucial support level at $2,200 near the support trendline and a horizontal level.

After multiple lower price rejections, Ethereum formed a bullish engulfing candle of nearly 14%. However, buyers failed to surpass the center pivot level, resulting in an intraday pullback.

Currently, ETH trades at a market value of $2,354 with a pullback of 6.49%. Nevertheless, the overnight recovery has resulted in an uptick in the MACD and signal lines, suggesting a potential bullish crossover.

Thus, the momentum indicator marks a significant change in the ETH price trend and enhances the possibility of Ethereum challenging the overhead trendline.

Open Interest Hikes to $20B, Bulls Grow Optimistic

Following last night’s quick recovery, Ethereum’s open interest surged to hit $20.65 billion. However, the increase in open interest did not equalize the bullish and bearish positions.

This is highlighted by the long-to-short ratio over the past 24 hours, remaining at 0.9849, indicating a slightly greater number of bearish positions.

Liquidations in the past 24 hours reached $182 million, with intraday pullbacks fueling long liquidations to $96.59 million. Nonetheless, the funding rate remains positive at $0.0049, as long-side traders anticipate a bullish comeback.

Ethereum Price Targets Extend to $3,800

According to ETH price analysis, the bullish recovery within the falling channel pattern hints at a potential trend reversal. However, Ethereum must surpass the overhead trend line for a fourth time to reinstate the bullish rally.

The pivot levels highlight immediate resistance at the $3,000 psychological mark for a channel breakout rally, while the R2 resistance level illustrates upside potential to reach the $3,800 horizontal level.

Conversely, crucial support for Ethereum remains at the $2,200 horizontal level, followed by the $2,000 psychological mark.