ETH Eyes This Level if it Crashes Below $1.6K (Ethereum Price Analysis)

Ethereum’s price is struggling to break above a key resistance level following a substantial rally over the last couple of months. However, there are multiple support levels that could hold the price in case of a reversal.

technical analysis

By: Edris

The Daily Chart

On the daily timeframe, the price has failed to break above the $1800 level and the higher boundary of the large symmetrical triangle pattern.

The cryptocurrency appears to be facing rejection to the downside at the moment, with the 50-day and 200-day moving average lines available as potential support levels around $1550 and $1400. Furthermore, in case the market pulls back even deeper, the $1300 support zone would be a key area to watch.

Source: Trading View

The 4-Hour Chart

Looking at the 4-hour chart, recent price action is becoming more clear. ETH is currently breaking below the $1650 support area, which could lead to a deeper decline towards the $1500 level in the short term if a valid breakout occurs.

The RSI indicator has also dropped below the 50% threshold, which points to the current seller’s domination and bearish momentum. Yet, the price could still move higher if the $1650 level holds. This could potentially lead to a break above the higher boundary of the triangle and a retest of the $1800 resistance area in the coming days.

Source: Trading View

sentiment analysis

By Shayan

Since 2018, the futures market has been essential in affecting Ethereum’s price. Therefore, examining its sentiment would be helpful in gaining insight into short-term price movements.

The Taker Buy Sell Ratio metric(with a 30-day SMA added) can be used to define the market’s perspective. Utilizing this feature, we can identify whether buying or selling pressure is significant, with values ​​above one indicating bullish and below 1 showing bearish sentiment.

Simultaneously with the recent bullish trend of Ethereum, the metric was spiking, indicating a bullish sentiment in the market. However, the price entered a consolidation stage, causing a significant decline in the metric below one. As a result, it dropped to a new multi-month low, implying a dominant bearish sentiment.

The recent rally should be closely monitored in the weeks ahead to determine whether this was just another bull trap or a beginning of a new bull market, as sellers might dominate again.

Source: CryptoQuant

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Cryptocurrency charts by TradingView.

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