Why is ETH stagnating behind the crypto market? (Ethereum Price Analysis)

After breaking above the middle boundary of the descending price channel, ethereum has temporarily lost its bullish momentum, slightly approaching the crucial resistance at $2,800.

The next price action around this level will play a decisive role in shaping ethereum's trajectory in the medium term, and potential outcomes will depend on whether buyers can overcome the selling pressure.

By shayan

The daily chart

ethereum's daily chart reveals that following a pullback towards the mid-threshold of the descending price channel, the market faced lower trading activity, leading to a slight consolidation stage with minimal volatility.

During this consolidation, eth price has retreated slightly towards the important resistance at $2,800, a critical level that aligns with ethereum's previous major high.

This price range is expected to act as a strong barrier as there is considerable supply here, making it a key battleground for buyers and sellers. A break above could indicate the continuation of the uptrend and a shift towards bullish sentiment in the market, while rejection would suggest the possibility of a reversal or consolidation towards the $2,500 support.

The 4 hour chart

On the 4-hour chart, ethereum's bullish momentum has decreased from the 0.5 ($2.6K) to 0.618 ($2.8K) Fibonacci retracement zone, forming a three-momentum pattern, a bearish technical indicator.

This suggests that sellers are gaining strength in this price range, which has historically been a solid resistance area. If sellers exert control, there could be a bearish pullback towards the lower boundary of the ascending flag pattern, around $2,400.

On the contrary, if buyers manage to regain control and push the price above the $2,800 resistance, ethereum is likely to extend its uptrend towards the next significant target of $3,000, marking a possible breakout and continuation of the bullish momentum.

By shayan

Analyzing key metrics of perpetual markets can provide valuable information on possible future price movements. One such metric is the taker's buy/sell ratio, which measures the ratio of market buy orders to market sell orders across the entire futures market.

Since market orders directly influence price action, this relationship can help anticipate changes in market sentiment and direction.

Over the past few months, the 30-day moving average of ethereum's buy/sell ratio has remained consistently below 1.

This suggests that sellers have been more aggressive than buyers, increasing market supply. However, the ratio has recently recovered along with a price rise from the $2,100 support zone, indicating a possible change in market sentiment. As the ratio approaches the critical threshold of 1, selling pressure in the futures market may be decreasing. If this bullish trend persists in the buyer's bid/sell ratio, it could mean a reduction in aggressive selling, setting the stage for a market rally.

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