The Ethereum price has been trending upwards in recent weeks, leading investors to be optimistic that a new bull market is on the way. However, there are still key resistance levels that need to be cleared for ETH to experience a new long-term uptrend.
Technical analysis
By: Edris
the daily chart
On the daily chart, the price has rallied after a decisive bounce from the 200-day SMA, along with a bullish break from the 50-day SMA. The aforementioned 50-day moving average, currently sitting around the $1,850 mark, has recently supported the price, pushing it higher.
Currently, the $2,200 level is the most likely target in this time frame. A break above the $2200 level would be critical for the market to enter a longer-term uptrend once again.
The 4 hour chart
Looking at the 4 hour chart, things look more interesting. Ethereum price has broken out of the large falling wedge pattern, but the $1920 resistance level has rejected ETH multiple times. Even so, the cryptocurrency has remained at the upper limit of the falling wedge and has been in a steady upward trend.
The $1,920 level is currently being broken to the upside as the market rally towards the psychological $2,000 level. Furthermore, while the RSI indicator is currently demonstrating bullish momentum dominance, it is approaching the overbought zone.
sentiment analysis
Ethereum Taker Buy and Sell Ratio
To gain insight into current market sentiment and determine whether Ethereum is entering a new bull market or continuing the current bear market, it would be valuable to examine sentiment in the perpetual futures market.
Analysis of the taker’s bid-ask ratio metric, which is smoothed by a 100-day exponential moving average, provides valuable insight into the dominance of long or short traders. A ratio greater than 1 suggests bullish sentiment, while a ratio less than 1 indicates bearish sentiment.
Despite the gradual recovery of the Ethereum price in recent months, the Taker bid-ask ratio remains below 1. This suggests that there is continued bearish sentiment in the futures market. Some investors may be shorting the market to cover their spot portfolios, while others are shorting for profit, indicating a belief that the bear market is not over yet.
If this behavior continues among futures traders and demand in the spot market subsides, it could lead to selling pressure and a possible bearish reversal soon.
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