As Ethereum exits its recent consolidation range and aims for the next significant resistance level, the price action leans positive.
Technical Analysis
By: Edris
The Daily Chart
On the daily chart, the price has been consolidating in a tight range over several weeks. However, it finally seems that a bullish continuation is the most probable scenario.
In this case, the $1800 resistance level and the higher boundary of the large symmetrical triangle could finally be tested in the coming days. A breakout above these levels would pave the way for a rally toward the crucial $2300 resistance area.
On the contrary, in the event the price gets rejected to the downside, the 200-day and 50-day moving average lines, located around $1400 and the $1350 mark, would be considered the next potential support areas.
The 4-Hour Chart
Looking at the 4-hour timeframe, the price hasn’t been able to close above the last high around the $1650 resistance zone, but the bullish momentum suggests that it will do so soon. This aforementioned area is the last obstacle before the $1800 level, and the price’s reaction to it would indicate what the mid-term holds for Ethereum.
However, it should be mentioned that the RSI indicator is approaching the overbought area once more, pointing to a potential reversal in the short term. In case a pullback occurs, the $1500 support level could be counted on yet again to hold the price.
Sentiment Analysis
ETH Taker Buy Sell Ratio
Ethereum’s recent price surge has revived the positivism in the market, and many are hoping that the bear market could finally be over. However, some worrying signs are starting to appear.
This chart demonstrates the Taker Buy Sell Ratio with a 100-day standard moving average applied. This metric indicates whether buyers or sellers are more aggressive in the futures market and is one of the most useful tools for futures sentiment evaluation. Values above 1 show higher buying pressure, while values below 1 point to increased selling.
Recently, the Taker Buy Sell Ratio has been trending above 1 while the price was on the rise. In spite of this, the metric’s trend is seemingly shifting to the downside, as it has been on the decline for the last few days.
This signal suggests that the buyers are slowing down in the futures market.
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Source: https://cryptopotato.com/eth-battles-for-1-7k-but-worrying-signs-appear-whats-next-ethereum-price-analysis/