Ethereum’s price has been consistently making lower highs and lows over the last few months. The current key area will determine the mid-term market trend.
The Daily Chart
On the daily timeframe, the price has broken below multiple support levels, including the 50-day and 200-day moving averages. These moving averages have shown a recent bearish crossover, further suggesting a negative trend. However, ETH is currently testing the $1,650 resistance level.
A breakout would lead to a potential retest of the 50-day moving average around $1,700 and even the 200-day moving average around $1,800. On the other hand, a rejection would likely result in another drop toward the $1,400 support zone.
The 4-Hour Chart
On the 4-hour timeframe, a large falling wedge pattern forms, with the price currently testing the upper boundary. If a bullish breakout occurs, ETH could surge toward the $1,750 resistance level and potentially retest the key $2,000 area mid-term. However, the RSI indicator is below 50% in the short term, indicating bearish momentum.
As long as the lower boundary of the wedge pattern and the $1,550 support level hold, investors can remain optimistic.
Ethereum Taker Buy Sell Ratio
Ethereum’s price has been trending down over the past few months, failing to break above the $2,000 resistance level. However, the futures market is showing a bullish signal.
This chart represents the taker buy-sell ratio, a useful metric for evaluating futures market sentiment. It indicates whether buyers or sellers are executing more aggressive market orders. Values above 1 are considered bullish, while values below 1 are bearish.
After a decline, the taker buy-sell ratio has recently spiked, trending towards 1. If the metric rises above 1, it could lead to a new bullish trend, potentially pushing ETH’s price above $2,000 per coin in the coming months.
The post ETH Shaky at $1.6K but This Bullish Sign Gives Hope (Ethereum Price Analysis) appeared first on CryptoPotato.
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