The price of Ethereum reached a key level in close proximity to a crucial support region after many weeks of rejection and a string of negative occurrences. The 61.8% Fibonacci retracement level is also included in this.
Fortunately, the price bounced back from this pivotal area, giving some hope despite the general bearishness. This recovery raises the prospect of a brief consolidation period.
Technical Analysis (Ethereum):
The Daily Chart
The price of Ethereum has been declining for a while, breaching several support levels, including the critical 100 and 200-day moving averages. As a result, Ethereum dropped to $1,531, a multi-month low. But at this time, the price of Ethereum ran into a crucial support region, which is between the 50% and 61.8% Fibonacci retracement levels.
Market participants still believe that this range is the last line of defense for Ethereum bulls. The possibility of a severe downward tumble might grow if the price falls below this level.
In addition to these warning signs, a death cross event—a powerful warning sign—was formed when the 100-day moving average crossed below the 200-day moving average. Nevertheless, there is always optimism that the price may find support despite these negative signs moving around the 200-day and 100-day moving averages.
The 4-Hour Chart
When we shift our attention to the 4-hour timeframe, we can observe that the price of Ethereum had a period of consolidation between the $1.6K and $1.8K price range. A bearish flag pattern developed during this time, and finally the price fell below the flag’s bottom trendline, causing a substantial downward swing.
However, purchasing pressure increased as Ethereum got closer to the crucial support level at $1.5K, causing a comeback. As a result, there was a regression towards the broken flag’s lower threshold, which may have formed a retreat. If this retreat is effective, it may signal the beginning of another bearish trend that aims to break through the $1.5K level.
Market investors can predict a rise into the $1.7K resistance level if the price fails to finish the decline and instead breaks above the trendline. It is essential to pay close attention to these price swings since the future price movement in and around these key support and resistance levels will probably decide Ethereum’s mid-term destiny.
On-chain Analysis Ethereum
The Taker Buy Sell Ratio statistic and Ethereum’s price are shown on the accompanying chart, along with a 30-day simple moving average. This statistic aids in determining if buyers or sellers are acting hastily while fulfilling orders. Bullish indications are positive values, whereas bearish signs are negative numbers.
The price of Ethereum, however, has recently been declining and has consistently run into resistance above the $2,000 mark. For the previous few months, the indicator has constantly been negative, indicating the dominating pessimistic sentiment in the ETH futures market.
Although this measure rapidly increased, putting its value closer to the neutral 0 line, there has been a noticeable shift in it. This increase reflects a possible shift in market participants’ attitudes toward a more positive position.
This metric’s rising trend and entry into positive territory might indicate the start of a new stage with optimistic price movement. In such a case, the price of Ethereum would increase, possibly aiming for greater resistance levels.
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