As a seasoned financial analyst with extensive experience in cryptocurrency markets, I have closely monitored Ethereum’s price action and market sentiment over the past few months. The recent surge in buying interest and demand has resulted in Ethereum reclaiming its 100-day and 200-day moving averages, which is a bullish sign for potential further gains.
After a renewed appetite for purchasing Ethereum and increased market demand, the cryptocurrency’s price has bounced back, regaining its footing above the 100-day and 200-day moving averages.
Based on current price trends, there are indications of an upcoming rally. Buyers aim for reaching a new peak in the market within the intermediate term.
Technical Analysis
By Shayan
The Daily Chart
An in-depth examination of Ethereum’s daily price chart indicates that following a significant uptick in purchasing activity around the robust $3K support level, Ethereum experienced a bullish rally, exceeding both its 100-day average ($3340) and 200-day average ($3152).
Furthermore, Ethereum (ETH) has regained the important resistance level of $3,500, which has served as a major hurdle for purchasers over the past few months. This price movement suggests a robust buying power in the market, with buyers targeting a new record high for the year.
Ethereum has been forming a sideways pattern, or a wedge, over the past few months. This trend is predicted to continue with a brief period of market consolidation before resuming its upward trajectory. If Ethereum manages to break through the upper limit of this wedge at around $3,700, it could reach new annual highs above $4,000.
The 4-Hour Chart
On the 4-hour chart, a strong uptick in buying pressure propelled the price upward, shattering the prolonged downward trendline.
As a crypto investor, I’ve noticed an unexpected surge in the market that allowed us to break through the crucial $3.3K resistance level. This region had been brimming with sellers beforehand. However, this recent development indicates robust buying power among investors, signaling their intentions to push prices upward in the foreseeable future.
Ethereum hit a significant peak on its 4-hour chart previously, leading to a period of price stabilization.
As a crypto investor, I can tell you that this resistance level acts as a strong barrier for price swings, and if the price manages to break above it, we could be in for another powerful surge towards the significant $3.7K resistance zone. The current consolidation phase is an encouraging sign for the market, indicating a healthy correction after the recent trendline breakout and completing a pullback to it. If the price moves beyond its previous key pivot at $3524, the bullish trend will gain momentum once again.
Sentiment Analysis
By Shayan
Examining Ethereum’s price recovery, it’s important to delve deeper to ascertain if the upward trend is sustainable. The graph reveals the Taker Buy/Sell Ratio, a significant indicator of futures market mood. Ratios exceeding 1 signify robust buying activity from bulls, whereas figures below 1 suggest bearish selling dominance.
According to the chart’s representation, the Taker Buy/Sell Ratio significantly increased beyond 1 at the same time Ethereum’s price experienced a bullish recovery. This increase signifies robust buying activity in the perpetual market, implying a considerable bullish sentiment. If this upward trend in the Taker Buy/Sell Ratio persists, it implies a possible mid-term bullish trend for the market, potentially leading to higher prices.
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2024-07-18 17:47