Ethereum’s Price Analysis: Testing Key Levels
Ethereum’s price has been on a downward trend, forming lower highs and lows in recent months. The current key area will determine the mid-term market trend.
The Daily Chart
On the daily timeframe, Ethereum’s price has broken below several support levels, including the 50-day and 200-day moving averages. This bearish crossover suggests a negative trend. However, there is currently a test of the $1,650 resistance level.
If there is a breakout above this level, there could be 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 lead to another drop towards the $1,400 support zone.
The 4-Hour Chart
On the 4-hour timeframe, Ethereum forms a large falling wedge pattern with the price currently testing the upper boundary. A bullish breakout could lead to a surge towards the $1,750 resistance level and a potential retest of the key $2,000 area in the mid-term. However, the RSI indicator indicates bearish momentum in the short term.
As long as the lower boundary of the wedge pattern and the $1,550 support level hold, there is room for optimism among investors.
Ethereum Taker Buy Sell Ratio
Ethereum’s price has been struggling to break above the $2,000 resistance level. However, the futures market is showing a bullish signal.
The taker buy-sell ratio is a useful metric for evaluating futures market sentiment. Values above 1 indicate a bullish sentiment, while values below 1 indicate a bearish sentiment.
After a decline, the taker buy-sell ratio has recently spiked and is trending towards 1. If this metric rises above 1, it could signal a new bullish trend and potentially push Ethereum’s price above $2,000 per coin in the coming months.
Hot Take: Hope for Ethereum’s Price Amidst Shaky Conditions
Ethereum’s price analysis shows that it is currently testing key levels and facing both bearish and bullish indicators. The daily chart suggests a negative trend, but there is potential for a breakout towards higher resistance levels. On the 4-hour chart, there is a falling wedge pattern that could lead to a bullish surge if broken. Additionally, the taker buy-sell ratio in the futures market indicates a possibility of a new bullish trend. While the situation may seem shaky, there is hope for Ethereum’s price to rise above $2,000 per coin in the near future.
Sources: TradingRage, CryptoPotato
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