The Ethereum price has seen a drop in recent days after failing to break above the $2,000 level. However, it is currently testing a major support level and its response is expected to have a significant performance impact in the coming months.
Technical analysis
By: Edris
The daily chart:
On the daily time frame, Ethereum price has faced rejection from the 50-day moving average at around $1,850 and has subsequently declined below $1,800. The price is currently seeing momentum to the downside, but is finding support near the 200-day moving average around $1,600.
The 200-day moving average is a strong indicator of the overall trend, and if ETH breaks below it, it would signal a continuation of bearish market sentiment, which could lead to a drop towards the $1,300 level.
However, if the price recovers from the mentioned moving average and successfully breaks above both the $1,800 level and the 50-day moving average, there is a high probability that Ethereum will rally towards the resistance level at $2,300 and potentially even higher. high.
The 4 hour chart:
On the 4-hour chart, the Ethereum price has seen a rapid decline in recent days after being rejected from the $1900 level and the upper limit of the large falling wedge pattern.
It is currently testing the lower trend line of the pattern, which sits around the $1600 support level. A break below would have serious consequences for the price.
However, the RSI indicator suggests that the market is oversold, suggesting the possibility of a possible pullback, consolidation, or even a bullish reversal from the current area. However, the outcome will depend on whether the price can hold at the current level or crash further.
sentiment analysis
By: Edris
Ethereum Taker Buy and Sell Ratio
Ethereum price has been in a downtrend after failing to break above the $2,000 level. To gain insight into the reasons behind this behavior, it can be informative to analyze the sentiment in the futures market.
The taker buy-sell ratio metric, represented on the chart with an applied 100-day moving average, examines whether buyers or sellers are executing their perpetual futures orders more aggressively, which means entering at the market price. instead of setting limit orders.
It is evident that as the price approached $2,000, the metric fell below 1, indicating that short sellers began to dominate the market and actively shorted Ethereum. This contributed to downward pressure on the price. Although the ratio has shown a slight recovery recently, as long as it remains below 1, there is still the possibility of further downward price movement.
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