As the ethereum price continues its downward trend, investors are wondering if the bull market is over. However, there is still a key support level that can provide the foundation for a recovery.
Technical analysis
The daily chart
On the daily chart, the price has been trending lower within a large descending channel pattern. Over the past few days, the market has failed to reclaim the $3500 level and has fallen further following a bearish rejection.
Currently, a drop towards the support level of $3,000 could be expected, which coincides with both the lower boundary of the channel and the 200-day moving average.
While this confluence of support elements makes $3000 a strong support zone, if it breaks, things can get much worse very quickly.
The 4-hour chart
The 4-hour time frame shows a clear picture of the price rejection from the $3,500 resistance level. The short-term support zone of $3,350 is also breaking lower, which makes $3,000 a likely target for eth.
Therefore, investors should keep an eye on the RSI as it has entered the oversold zone, which could indicate a possible recovery soon.
Analysis of feelings
Purchase-sale relationship of the policyholder
Analyzing ethereum futures market metrics can be a great complement to price analysis. This chart shows one of the most useful metrics in the futures market: the bid-ask ratio of buyers.
Measures whether buyers or sellers are more aggressive in executing their orders together.
As the chart shows, after the rejection of the $4,000 level, a large volume of sell orders was executed on the futures market, which brought the buyers' buy-sell ratio to its lowest value in recent months. This indicates that futures market traders believe that the price will fall even further in the near term.
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