Technical Analysis
The Daily Chart
– Ethereum’s price failed to maintain above the critical $1,750 level and got heavily rejected to the downside.
– If ETH breaks below the short-term $1,650 support level, a deeper drop towards the $1,400 area is expected.
– The 50-day and 200-day moving averages are about to go through a bearish crossover, signaling a potential mid-term bearish phase.
The 4-Hour Chart
– The $1,750 resistance zone has rejected the price to the downside, pushing it back towards the $1,650 support level.
– The RSI indicator has dropped below the 50% threshold, indicating bearish control.
– If ETH fails to hold above $1,650 and reclaim the $1,750 area quickly, a further decline is expected.
On-Chain Analysis
Ethereum Taker Buy Sell Ratio
– Ethereum’s price has recently experienced a significant drop after weeks of consolidation.
– The taker buy-sell ratio metric, which indicates buyer and seller aggression, has been consistently dropping below one.
– This bearish trend suggests that bearish price action is more likely.
– For an impulsive uptrend to start, futures traders should buy more aggressively, indicated by the metric rising above one.
Hot Take
Based on technical and on-chain analysis, Ethereum’s price seems likely to drop further. The failure to maintain above key support levels and the bearish crossover of moving averages indicate a potential mid-term bearish phase. The decreasing taker buy-sell ratio also suggests a bearish sentiment. Traders should be cautious and monitor the price closely for further declines.
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