The Critical Point for Ethereumโs Price
After weeks of rejection and bearish developments, the price of Ethereumย (ETH) has reached a critical point near a pivotal support area, inย particularย the 61.8% Fibonacci retracement level. Fortunately, the price has rebounded from this zone, providing hope amidst the prevailing bearish sentiment and suggesting the likelihoodย of a short-term consolidation phase.
Technical Analysis: The Daily Chart
Ethereumโs 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 Ethereumย (ETH) bulls. If the price falls below this threshold, itย might lead to a wholeย lotย of downward plunge.
Inย addition, a death cross event tookย place as the 100-day moving average crossed below the 200-day moving average, signaling strong bearish sentiment. Regardlessย of these indicators, thereย is still hope for a consolidation phase around the moving averages.
The 4-Hour Chart
On the 4-hour timeframe, Ethereumย (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 wholeย lotย of downward movement.
Nonetheless, buying pressure intensified as Ethereumย (ETH) approached the critical levelย ofย 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 Ethereumย (ETH) continuesย its downward phase or surges towards the $1.7K resistance level.
On-chain Analysis
The Taker Buy Sell Ratio metric, along with Ethereumโs price, indicates whether buyers or sellers are aggressively executing orders. Regardlessย 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 positiveย trend sentiment between market participants.
If this upward trajectory continuesย and the metric enters positive territory, itย might signal a new phase of positiveย trend price action for Ethereumย (ETH), potentially targeting higher resistance levels.
Hot Take: Bounce to $2K or More Pain for Ethereum?
After facing rejection and bearish developments, Ethereumโs 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 wholeย lotย 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 positiveย trend sentiment. The upcoming price action will likely determine Ethereumโs mid-term trajectory.
Source: CryptoPotato
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.
