The cryptocurrency market experienced another bullish rally after a short-term price decline. Ethereum was no exception as the price rallied, making a new high and is currently facing a region of significant resistance.
Technical analysis
By Shayan
the daily chart
After a short-term decline towards the broken triangle pattern and the 200-day moving average, Ethereum found support and started a bullish rally, completing the pullback to the broken level.
After printing three powerful consecutive bullish daily candles, the price reached the crucial resistance region of $1.7K and formed a higher pattern high at $1780. This indicates that the trend is up.
However, the $1.7K region acts as a significant resistance and has rejected the price multiple times. If ETH breaks above the mentioned level, an impulsive rally will be imminent.
The 4 hour chart
The price reversal is most evident on the 4-hour time frame chart. Ethereum’s decline came to a halt after hitting the lower trend line of the ascending channel at $1350, resulting in a massive price surge.
However, the price is currently struggling with the middle limit of the channel, approximately $1640. In case it falls below the trend line, ETH could face a consolidation stage with a slight drop in price.
On the other hand, if the price finds support at this level, it will probably start a rally to reclaim the $1.7K level.
chain analysis
By Edris
Ethereum Taker Buy and Sell Rate (SMA 100)
The Taker Buy Sell Ratio measures whether the bulls or the bears are currently executing their trades more aggressively. Values above one indicate dominant buying pressure, while values below 1 are associated with negative sentiment.
This metric has been on the decline for the past few weeks and has dipped below 1 recently.
This behavior indicates that the bears are currently more aggressive and futures market sentiment has turned bearish, which could result in a drop in the near term.
Should the Taker Buy Sell ratio fall further, the market could enter another bear phase, and the bear market could go on for even longer.
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cryptocurrency charts by TradingView.
