Technical Analysis
After consolidating around $1,500, Ethereum has made a comeback and reclaimed the $2,000 resistance level. However, it is currently facing a crucial price range that poses a challenge for further upward movement.
The Daily Chart
Ethereum has been on an upward trend for the past two months, with increased buying pressure pushing it above the significant $2,000 resistance. Now, it is targeting the $2,300 resistance region, which includes both static and dynamic resistance levels.
The upper trendline of the Wedge has proven to be a significant barrier in the past. If Ethereum can overcome this region, the next target could be $2,500.
The 4-Hour Chart
On the 4-hour chart, Ethereum found support near $1,500 and started a strong uptrend. It broke through multiple resistance levels, including $2,000. However, it lost momentum at the $2,400 resistance region and formed an ascending wedge pattern.
There is also a bearish divergence between the price and the RSI indicator, suggesting potential overvaluation. While buyers seem to be in control, there is a possibility of a consolidation correction phase in the short term.
On-chain Analysis
Ethereum’s recent price surge has brought back bullish sentiment in the market. However, the taker buy-sell ratio metric has declined below 1 during this surge, indicating a potential correction stage as participants may sell their Ethereum holdings to secure profits.
This decline in the metric suggests that there could be a consolidation correction before determining the next move. The divergence between the price and the declining taker buy-sell ratio points to a potential shift in market dynamics.
Hot Take: Ethereum Faces Crucial Price Range
Ethereum has made a strong comeback, reclaiming the $2,000 resistance level. However, it is now facing a crucial price range that presents a challenge for further upward movement. The daily and 4-hour charts indicate potential obstacles and the possibility of a consolidation correction phase. Additionally, on-chain analysis suggests a decline in the taker buy-sell ratio, signaling a potential shift in market dynamics. While the overall sentiment is bullish, caution is advised as Ethereum navigates this critical price range.
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