The Ethereum price registered a substantial increase and finally broke through the upper limit of the channel. Despite this, the cryptocurrency is approaching a critical resistance zone and if a breakout occurs, an impulsive uptrend would be more likely.
Technical analysis
For Shayan
the daily chart
Ethereum price has been in an uptrend since breaking above the 50-day and 100-day moving average lines and has currently reached the critical resistance zone of $1.6K.
This price region consists of two crucial resistance levels; the static resistance level of $1,600, which has been serving as a solid barrier for the price for the past few months, and the previous price high at $1,680, which usually serves as resistance in an uptrend.
In general, pushing the price above this vital resistance level could be quite challenging, and if successful, the market could break out.
However, considering that the price enters the overbought zone of the RSI indicator, a short-term consolidation could be possible before the next impulsive move.
The 4 hour chart
On the 4-hour time frame, the price has been making higher highs and lower lows, which is a typical bullish sign. However, the cryptocurrency simultaneously entered a short-term consolidation and reached the $1.6K resistance level.
Ethereum seems to have gained enough momentum to break above the $1.6K resistance zone. Still, the existing bearish divergence between the price and the RSI indicator could halt the current uptrend in the short term and lead to a correction phase with low volatility.
chain analysis
For: Edris
Ethereum Taker Buy and Sell Rate (SMA 100)
The Ethereum price has been significantly affected by the futures market in recent years.
This chart represents the Taker Buy and Sell Index with a standard 100-day moving average applied. This relationship shows whether the bulls or the bears are executing their trades more aggressively, with values above 1 indicating bullish sentiment and values below 1 indicating bearish sentiment.
This metric has been rising for the past several weeks, indicating a positive shift in futures market sentiment, followed by a recent rise in prices.
While the metric is currently above 1 and trending up, a reversal in its trend likely points to the possibility of a bearish reversal and should be closely monitored in the near term.
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