ETH lags behind as pullback to $2.1K becomes possible

ethereum has faced significant resistance at the $2.8K level, which marks the lower boundary of a multi-month wedge pattern.

The price action suggests that it could be completing a pullback, which could take the price towards the $2.1K threshold.

By shayan

The daily chart

ethereum has been grappling with the lower boundary of the multi-month wedge at $2.8K for several weeks, suggesting a possible completion of the pullback.

After pulling back towards this key resistance level, the price has entered a period of slight consolidation, reflecting insufficient market demand. Low volatility near this resistance suggests that the pullback could be coming to an end.

Given the significant supply pressure around the $2.8K mark, a rejection could lead to a drop towards the critical $2.1K support region.

Moreover, the 100-day moving average is approaching a crossover below the 200-day moving average at $3,200, which could form a “death cross.” This pattern usually indicates a bearish market outlook, which further supports the expectation of rejection at $2,800 and a subsequent price decline.

The 4-hour chart

On the 4-hour chart, ethereum has entered a crucial range between the 0.5 ($2.6K) and 0.618 ($2.7K) Fibonacci levels after consolidating near the $2.8K resistance.

The price is facing strong selling pressure and is struggling to break above this critical resistance with little bullish momentum.

eth is currently testing the lower boundary of the wedge pattern. If the selling pressure intensifies and the price falls below this boundary, it could confirm the continuation of the downtrend, targeting the support level of $2.1K.

It will be essential to keep a close eye on price action in the coming days as the potential for a deeper correction remains high.

By shayan

Analysis of ethereum futures market metrics provides valuable insights that complement traditional price analysis.

This chart highlights the bid-ask ratio, one of the most important indicators in the futures market. It measures the aggregate aggressiveness of buyers versus sellers in executing orders.

Recently, the Taker buy-sell ratio plummeted to its lowest level in months, indicating substantial selling pressure in the market. However, the metric has since started to recover and is showing a slight rebound.

This suggests that buyers are attempting to push ethereum price above the critical resistance level of $2.8K. If this bullish trend in the ratio continues, the current retracement phase may extend in the near term.

<!– ai CONTENT END 1 –>