As Ethereum breaks out of its recent consolidation range and targets the next significant resistance level, the price action is tilting positively.
Technical analysis
By: Edris
the daily chart
On the daily chart, the price has been consolidating in a tight range for several weeks. Ultimately though, it looks like a bullish continuation is the most likely scenario.
In this case, the $1800 resistance level and the upper bound of the large symmetrical triangle could finally be tested over the next few days. A break above these levels would pave the way for a rally towards the crucial $2300 resistance area.
Conversely, in case the price is rejected to the downside, the 200-day and 50-day moving average lines, located around $1,400 and the $1,350 mark, would be considered the next potential areas of support.
The 4 hour chart
Looking at the 4 hour time frame, the price has not been able to close above the last high around the $1650 resistance zone, but the bullish momentum suggests that it will soon. This aforementioned area is the last hurdle before the $1800 level, and the price reaction would indicate what the medium term holds for Ethereum.
However, it is worth mentioning that the RSI indicator is once again approaching the overbought area, which points to a possible reversal in the near term. Should a pullback occur, the $1500 support level could be counted on once again to hold the price down.
sentiment analysis
ETH Taker Buy and Sell Ratio
Ethereum’s recent price surge has revived positivity in the market, with many expecting the bear market to finally end. However, some worrisome signs are beginning to appear.
This chart shows the Taker Buy and Sell Index with a standard 100-day moving average applied. This metric indicates whether buyers or sellers are more aggressive in the futures market and is one of the most useful tools for evaluating futures sentiment. Values above 1 show more buying pressure, while values below 1 point to more selling.
Recently, the Taker Buy Sell Ratio has been trending above 1 while the price has been rising. Despite this, the trend of the metric is apparently turning downward, as it has been on the decline for the past few days.
This signal suggests that buyers are slowing down in the futures market.
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