Ethereum Price Analysis: Will ETH Surge to $2K or Face More Challenges?

Ethereum Price Analysis: Will ETH Surge to $2K or Face More Challenges?

The Critical Point for Ethereum’s Price

After weeks of rejection and bearish developments, the price of Ethereum (ETH) has reached a critical point near a pivotal support area, in particular  the 61.8% Fibonacci retracement level. Fortunately, the price has rebounded from this zone, providing hope amidst the prevailing bearish sentiment and suggesting the likelihood of a short-term consolidation phase.

Technical Analysis: The Daily Chart

Ethereum’s price has been in a prolonged downtrend, breaking multiple support levels, including the critical 100 and 200-day moving averages. Nonetheless, it has encountered a critical support zone between the 50% and 61.8% Fibonacci retracement levels. This range is seen as the final defense for Ethereum (ETH) bulls. If the price falls below this threshold, it might lead to a whole lot of downward plunge.

In addition, a death cross event took place as the 100-day moving average crossed below the 200-day moving average, signaling strong bearish sentiment. Regardless of these indicators, there is still hope for a consolidation phase around the moving averages.

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The 4-Hour Chart

On the 4-hour timeframe, Ethereum (ETH) experienced a consolidation phase within the $1.6K-$1.8K price range. A bearish flag pattern formed during this period, and when the price broke below the lower trendline of the flag, it triggered a whole lot of downward movement.

Nonetheless, buying pressure intensified as Ethereum (ETH) approached the critical level of support at $1.5K, resulting in a rebound and potentially forming a pullback towards the lower threshold of the broken flag. The success or failure of this pullback will determine whether Ethereum (ETH) continues  its downward phase or surges towards the $1.7K resistance level.

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On-chain Analysis

The Taker Buy Sell Ratio metric, along with Ethereum’s price, indicates whether buyers or sellers are aggressively executing orders. Regardless of the recent downtrend and repeated rejection around the $2,000 resistance level, there has been a notable surge in this metric, suggesting a probable shift towards a more positive trend sentiment between market participants.

If this upward trajectory continues  and the metric enters positive territory, it might signal a new phase of positive trend price action for Ethereum (ETH), potentially targeting higher resistance levels.

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Hot Take: Bounce to $2K or More Pain for Ethereum?

After facing rejection and bearish developments, Ethereum’s price has reached a critical point near a pivotal support area. The rebound from this zone provides hope for a short-term consolidation phase. Nonetheless, the price must be closely monitored as it approaches whole lot of support and resistance levels. Technical analysis indicates that the price could either bounce towards $2K or experience further downward pain. On-chain analysis suggests a probable shift towards positive trend sentiment. The upcoming price action will likely determine Ethereum’s mid-term trajectory.

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Source: CryptoPotato

Author – Contributor at | Website

Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.

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