Ethereum’s recent price action hasn’t been straightforward. The second-largest cryptocurrency by market capitalization experienced a meteoric rise that almost reached its all-time high but was met with a piercing reversal, leaving long-term traders licking their wounds.

Bulls strike, but sentiment remains positive

Over the last few days, the price of Ethereum has dropped from $3,880 to approximately $3,735. This has led to significant liquidations by long investors, exceeding $55 million in the last three days compared to just $16 million for miniature positions.

Despite the decline, technical indicators paint a bullish picture. The price remains above the miniature moving average and the relative strength index (RSI) remains above 60, suggesting a forceful underlying trend.

The funding rate, which reflects the cost of borrowing and borrowing cryptocurrency, provides further evidence of bullish sentiment. It remained positive and currently stands at 0.014%, suggesting that buyers are still dominant and expect the price to continue to rise.

Interest in an open offer is growing, which signals continued investor interest

Although the price has dropped, investor interest in Ethereum remains high. Open Interest, which reflects the total amount of futures contracts outstanding, peaked at $17 billion on May 28, the highest level in more than a year. This means that despite recent volatility, investors are still strongly committed to Ethereum and believe in its long-term potential.

Ethereum Price Forecast

Meanwhile, Ethereum’s current price forecast of $3,940 by June 30 suggests a potential upside of 2%. While the technical indicators remain neutral, a high Fear and Greed Index of 73 indicates a prevailing sense of greed among investors. This could result in further price movement in the miniature term.

Looking at recent performance, Ethereum has experienced moderate volatility with 57% green days over the past month. This suggests the potential for continued upward momentum, especially given the significant price rally since the cycle low of $897. However, please remember that the market is vigorous and corrections may occur even in bullish conditions.

Overall, technical analysis paints a mixed picture for Ethereum. While the neutral sentiment and recent price decline may raise some concerns, the high Fear and Greed Index and forceful performance since the low of the cycle suggest potential for further growth.

Featured image from Pexels, chart from TradingView