Ethereum Price Rises on Strong Technical Support

Ethereum's price has been under scrutiny lately, but technical analysis suggests it may still have room to grow. The cryptocurrency has been trading above a key support level of $1,850, and analyst Ali Martinez believes that as long as the price stays above this mark, there will be an attempt at a rebound to the upper limit of its trading channel, with $2,060 being the new target.

According to Martinez, Ethereum has been adhering to its trading channel limits, and the next couple of trade sessions could prove crucial in deciding the near-term trend. If buyers manage to hold above the $1,850 mark while keeping up high trade volume, there could be a gradual move towards the resistance at $2,060.

However, if sellers get stronger and break the support, then the focus could shift to lower support levels. The derivatives market of Ethereum showed a balanced scenario even with the recent price drop, with open interest down 1.50% and trading volume rising by 7.78%. This suggests that there has been some liquidation of leveraged trades, but also new players entering the market.