The price of ethereum has followed that of bitcoin, falling lower since the beginning of March. However, things may be about to change soon.
Technical analysis
The daily chart
On the daily chart, the price has been making consistent highs and lows within a descending channel pattern. However, with the 200-day moving average and the $2,750 support level nearby, the market seems likely to recover soon. Currently, the price is approaching the $3000 resistance level.
A bullish break above this level would be a likely scenario and could lead to an increase towards the upper boundary of the channel and the $3,600 resistance zone.
The 4 hour chart
If we look at the 4-hour chart, the price has been hovering around the $3000 level for the past few weeks. However, the market has broken a bearish trend line to the upside. If the price sustains above the trend line and breaks the $3000 level, a rally towards the upper boundary of the channel will be more likely.
With the RSI approaching 50%, it appears that market momentum is in balance, but the short-term fate may be decided today.
Analysis of feelings
Taker Buy and Sell Ratio (30-Day SMA)
The perpetual futures market has been one of the key factors driving cryptocurrency prices in recent years. Therefore, analyzing the metrics of this market can provide useful information to anticipate future price movements.
This chart shows the 30-day moving average of the taker's bid-ask ratio, which measures whether buyers or sellers are executing more market orders in aggregate. Since market orders are what move the price, this metric can provide crucial information.
The taker's bid-sell ratio has been trending below 1 in recent months, indicating that most futures traders have been selling btc aggressively. This can be for speculative or spot hedging portfolios. However, the metric is showing signs of recovery at the moment, and its rise could lead to a market rally as aggressive bidding would taper off. Therefore, with sufficient demand from the spot market, a new uptrend could soon begin.
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Cryptocurrency charts by TradingView.
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