Ethereum’s price has faced another setback as it failed to break above the key resistance level of $2,000. The recent bearish trend has left investors wondering if there are more troubles ahead for ETH. However, there is still hope for a potential rebound in the market.
Technical Analysis:
Daily Chart: The price of Ethereum has been on a downward trend since it was rejected at the $2,000 level. Currently, the 50-day moving average is providing support around $1,850. If this level breaks, the next strong support zone can be found at the 200-day moving average around $1,800. On the other hand, if the price rebounds from either of these levels, a rally towards $2,300 could be expected in the coming weeks.
4-Hour Chart: Looking at the 4-hour chart, the price is finding support at $1,850 after a bearish reversal from the $1,930 resistance zone. Although the market is showing signs of a rebound, there is still a high probability of a breakdown at the $1,850 level in the short term. If this occurs, a further decline towards $1,750 could be expected. The RSI indicator also indicates a bearish momentum with values below 50%. Therefore, another bearish move is likely before a potential rally towards the $2,000 mark or higher.
Sentiment Analysis:
The current sentiment surrounding Ethereum’s price is one of consolidation around the $2,000 level, with no clear indication of a rally in the near future. One important metric to consider is the taker buy-sell ratio, which reveals whether buyers or sellers are executing their trades more aggressively. Currently, the ratio has dropped below 1, indicating that sellers are selling aggressively. This selling pressure is one of the main factors contributing to the price’s failure to climb higher. If this behavior continues, it could lead to a bearish downturn in price.
In conclusion, Ethereum’s price is facing challenges as it struggles to break above the $2,000 level. Technical analysis suggests the possibility of further downward movement before a potential rally. The sentiment analysis reveals a bearish sentiment due to aggressive selling. Investors should closely monitor the market for any signs of a reversal or further decline in the coming days.
