After a brief bullish phase that brought optimism to the market, ethereum price reached the 100-day moving average and faced increased selling pressure, resulting in a sharp decline.
However, the price is currently within a critical range, suggesting a possible consolidation scenario in the medium term.
Technical analysis
By shayan
The daily chart
Examining the daily chart, ethereum saw a significant upward move with strong bullish momentum after finding support around the $1,500 range. However, after reaching the 100-day moving average at around $1.7k, eth faced substantial rejection, resulting in a strong downtrend. This price action completed a pullback towards the broken 100-day moving average, indicating a highly bearish trajectory.
The only bullish indicator is the price finding solid support within the range between the 0.5 and 0.618 Fibonacci retracement levels. This range serves as the bulls’ last line of defense, and a break below it could trigger a sudden cascade in the market.
The 4 hour chart
Analyzing the 4-hour chart, it is evident that the price has predominantly followed a downtrend, forming a falling wedge pattern. However, eth recently reached the crucial support level of $1.5K and found support, leading to a period of sideways movement within this range.
This sideways consolidation is limited between the support at $1,500 and the notable resistance at $1,700. Therefore, the most likely scenario for ethereum in the medium term is a sideways consolidation until the price breaks out of this static range. The direction of ethereum‘s next trend largely depends on the direction of the breakout.
Regardless of the outcome, it is essential to closely monitor the price action in the coming days as increased volatility can be expected, which will determine the direction of the market.
By shayan
ethereum price finally started an uptrend after failing to break below the $1,500 support region. Interestingly, the futures market is demonstrating a very bullish signal in contrast to the bearish ethereum price action.
The chart represents the buyer’s bid-sell ratio, which is one of the most useful metrics for assessing futures market sentiment. Values greater than 1 are considered bullish, while values less than 1 are bearish.
It is evident that after months of decline, the buyers’ bid-sell ratio has recently increased rapidly, surpassing the 1 mark. This suggests the presence of aggressive buyers in the futures market. If this metric continues with an uptrend, it would likely lead to a new bullish leg in the market, with the price targeting a significant $2K resistance zone in the coming months.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off fees on Binance Futures for the first month (terms).
PrimeXBT Special Offer: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 in your deposits.
Disclaimer: The information found on CryptoPotato is that of the writers cited. It does not represent CryptoPotato’s opinions on whether to buy, sell or hold investments. It is recommended that you conduct your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
<!– ai CONTENT END 1 –>
