ethereum price is encountering significant resistance around the pivotal $2,400 region, highlighting an ongoing fight between buyers and sellers.
Despite the efforts, the price has failed to surpass its previous high of $2,403, leading to a slight pullback and the possible formation of a double top pattern.
By shayan
The daily chart
After a period of sideways consolidation near the crucial $2.3k mark, the price rose aiming to reclaim its previous daily high of $2,403. This upward move is underlined by the appearance of a golden cross on the daily chart, indicating overall bullish sentiment for ethereum price action.
However, the price faced resistance as it reached a critical zone formed by the upper boundary of a multi-month wedge, coinciding with the previous daily swing at $2,403, thus forming a potential double top pattern.
Despite these challenges, the emergence of a possible head and shoulders pattern, a widely recognized bearish reversal formation, is notable. If the price falls below the neckline of both the head and shoulders pattern and the double top pattern, it could indicate a short-term bearish move. This pullback could see the price return to the substantial $2,000 support range.
The 4 hour chart
A closer analysis of the 4-hour chart reveals increased demand within the critical range between the 0.5 ($2,211) and 0.618 ($2,166) levels of the Fibonacci retracement indicator. This demand caused an impulsive price increase that attempted to surpass the daily high of $2,400.
However, ethereum faced slight rejection, resulting in a pullback towards the $2,300 static support level. Despite this pullback, ethereum price appears to be confined within a crucial range, encompassing the important $2.4K resistance region and the substantial static support range characterized by the 0.5 Fibonacci retracement levels ( $2,211) and 0.618 ($2,166), along with dynamic support provided. by the ascending trend line of several weeks.
A breakout in either direction from this range could signal the start of a new impulsive trend.
By shayan
Within the realm of on-chain data analysis, exploring the sentiment reflected in the futures market provides valuable insights into the overall outlook for ethereum.
The chart provided shows the standard 30-day moving average of the ethereum buyers bid-sell ratio. This metric indicates whether buyers or sellers are executing more aggressively in aggregate (receive orders). Values less than 1 are perceived as bearish, while values greater than 1 are indicative of bullish sentiment.
Examining the chart, a notable trend emerges: the buyers' buy-to-sell ratio has remained consistently below 1 for the past six months.
Despite the recent bullish price trend, the metric has entered a consolidation phase, indicating an overall bearish sentiment among futures traders. If the buyers' bid-sell ratio suddenly rises above 1 again, it would suggest a shift towards a full-blown bull market, which could push the price to new yearly highs.
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Cryptocurrency charts by TradingView.
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