The Ethereum price appears to have entered a short-term correction phase as the cryptocurrency was recently rejected from a vital resistance zone and plunged. However, two crucial support levels lie ahead, which could end the current slide.
Technical analysis
By Shayan
the daily chart
The price recently recovered and broke out of a multi-month symmetrical triangle pattern. However, the momentum has weakened. Following this drop, Ethereum is now facing the upper trend line of the triangle, which acts as a crucial support level.
ETH retesting the upper trend line, sitting at $1.5K, could be seen as a pullback to the broken level to confirm the breakout and continue rising. If the price falls below the trend line, the $1350 region will be the next price stop.
The 4 hour chart
There are three crucial support/resistance price regions on the Ethereum chart on the 4-hour time frame; the $1,700 region as resistance, and the $1,350 and $1,150 zones as supports. The price fluctuates between $1,700 and $1,350 and could stay within this range in the short term.
On the other hand, the 0.618 ($1319) and 0.5 ($1394) Fibonacci levels of the recent impulsive rally align with the $1350 support region, making it a decisive level to consider. Therefore, it seems likely that the price will consolidate towards the $1350 support area and then start to go higher.
chain analysis
By Edris
Ethereum Taker Buy and Sell Rate (SMA 100)
The futures market has been one of the most important factors in determining ETH’s short-term price action for the past few years. Therefore, analyzing your sentiment could offer useful information.
This chart shows the Taker Buy Sell Ratio metric with a 100-day moving average applied for better visualization. This metric shows whether the bulls or the bears are executing their orders more aggressively. Values above 1 indicate bullish market sentiment, while values below 1 indicate selling pressure in the futures market.
While this metric has been hovering above 1 for quite some time, it has recently been on the decline. This indicates that the buying pressure is easing, and should it drop below 1, the market will likely drop to a new low as sellers dominate once again.
This metric should be carefully monitored in the coming weeks to determine if the recent rally was truly the start of a new bull market or just another bull trap.
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cryptocurrency charts by TradingView.
