Ethereum Encounters Resistance at $2.4K
Ethereum’s price is facing significant resistance around the $2.4K mark, indicating a struggle between buyers and sellers. The price has been unable to surpass its previous swing high of $2403, resulting in a slight pullback and the potential formation of a double-top pattern.
Technical Analysis
The Daily Chart
After consolidating near $2.3K, the price surged to reclaim its previous swing high at $2403. A golden cross on the daily chart suggests a bullish sentiment. However, resistance was encountered at the upper boundary of a multi-month wedge and the previous swing high, forming a potential double-top pattern.
A potential head and shoulders pattern, a bearish reversal formation, has also emerged. If the price breaks below the neckline of both patterns, it could signal a short-term downward movement towards the support range at $2K.
The 4-Hour Chart
A detailed analysis of the 4-hour chart shows increased demand within the Fibonacci retracement levels between $2,211 and $2,166. An impulsive price spike attempted to breach the $2.4K resistance but faced rejection. The price remains within a crucial range, signaling the possibility of a new trend depending on a breakout in either direction.
On-chain Analysis
The sentiment reflected in the futures market provides insights into Ethereum’s perspective. The taker buy-sell ratio has consistently remained below 1 over the past six months, indicating a bearish sentiment among futures traders. A surge above 1 would suggest a shift to a bullish market and potentially push the price to new yearly highs.
Hot Take: Ethereum Faces Resistance and Potential Bearish Patterns
Ethereum’s price is struggling to surpass the $2.4K resistance, potentially forming a double-top pattern and a head and shoulders pattern. The on-chain analysis reflects a bearish sentiment among futures traders. A breakout in either direction from the current range could determine the next trend for Ethereum.
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