ethereum price has been falling for the past few weeks following a decisive rejection from a significant resistance level. However, there are several support levels nearby.
Technical analysis
The daily chart
On the daily chart, the price has been forming a large ascending channel over the last year. It recently tested the upper boundary of the channel, which coincided with the $2,750 resistance level and failed to break above it. The resulting rejection has been horrendous and the market has even fallen below the $2,400 support zone.
With the Relative Strength Index showing values below 50%, the price seems likely to decline towards the 200-day moving average, located around the $2,000 level.
The 4 hour chart
The 4 hour time frame does not offer much information. The market is currently consolidating between the $2,100 and $2,400 levels. In case of a breakout to the upside, the likely target would be the upper boundary of the large channel.
On the other hand, a break of the $2,100 level would likely result in a fall towards $2,000 and even below. Judging by the signals seen on the daily chart, a further decline seems more likely.
Analysis of feelings
ethereum Taker Buy and Sell Ratio
With ethereum price failing to break above the $2,500 level, investors might be curious to know how futures market traders are performing.
This chart presents the 100-day moving average of the taker's bid-ask ratio. This metric measures the ratio of aggressiveness of buyers compared to sellers. Values greater than one indicate buyer dominance, while values less than one are associated with aggressive selling pressure.
As the chart demonstrates, the metric has not recovered above one and has been falling aggressively over the past few weeks. The ratio is approaching values previously observed during the all-time high range at the end of 2021. This is not a positive sign by any means, and the trend could be about to turn bearish if things remain the same.
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Cryptocurrency charts by TradingView.
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