As a seasoned cryptocurrency trader with extensive experience in analyzing Ethereum’s price action, I have closely monitored the recent developments in the market. Based on my technical analysis of both the daily and 4-hour charts, it appears that Ethereum’s price is currently facing selling pressure, which could potentially lead to a bearish trend in the short term.

I’ve noticed that Ethereum‘s price has been relatively stable for some time now, with corrective movements here and there. However, recently, there’s been an uptick in sellers in the market, causing a slight downtrend towards the 100-day moving average.

The central issue at hand is whether Ethereum sellers can push the price below this significant moving average.

Ethereum Price Analysis: Technicals

By Shayan

The Daily Chart

Observing the intraday price action closely, I noticed that after a prolonged period of corrections where the price touched the significant resistance level at $3.2K multiple times, the selling intensity significantly increased, leading to a minor decline in market value.

I’ve noticed that the Ethereum price is currently facing a significant test against the 100-day moving average, which sits at around $3086. Historically, this area has drawn in notable buying interest due to its potential ability to curb selling pressure.

Despite the current market mood and recent Ethereum price trends, it seems that there isn’t enough energy or purchase interest for Ethereum, raising the possibility of a bearish trend developing in the near future. Nevertheless, if Ethereum were to unexpectedly fall below its crucial support level, this could lead to a chain reaction towards the 200-day moving average at $2,500.

The 4-Hour Chart

Taking a closer look at the price action on the 4-hour chart, we notice that after a phase of sideways movement close to the lower edge of the wedge formation, which lines up with the support zone around $3K, there was a significant surge in buying interest. This buying pressure resulted in a bullish turnaround for the price.

The heightened interest led to a substantial jump near important resistance areas around $3234 (0.5 Fibonacci level) and $3324 (0.618 Fibonacci level).

I’ve noticed that despite the sellers gaining back control and causing a renewed downturn in the market, which is a clear bearish sign, Ethereum’s price seems determined to stay within its crucial range for now. This range is defined by strong support at $2.8 on the lower end and critical resistance at $3.3 on the upper end. It remains to be seen when this price action will result in a breakout that could potentially shift the market sentiment.

Is ETH About to Plunge Below $3K or Will the Bulls Step In? (Ethereum Price Analysis)

Sentiment Analysis

By Shayan

If Ethereum’s price hasn’t managed to climb above $3,700, it might be worthwhile for investors to examine how traders in the futures market are acting.

The chart below shows the average number of buys and sells over the past 14 days, as represented by the Taker Buy Sell Ratio. This measure helps determine the degree to which buyers are more active than sellers. A ratio greater than one implies stronger buyer activity, while a ratio less than one suggests intense selling activity.

Observing the chart before me, I notice that the metric has fallen short of rebounding above one for quite some time. Furthermore, it’s been on a steep slide over the past few weeks, with the ratio showing a consistent decrease and approaching its lowest mark since September 2022. This persistent decline raises concerns, implying Ethereum’s bearish trend may prolong in the intermediate term if current circumstances don’t change.

2024-04-25 16:51

Is ETH About to Plunge Below $3K or Will the Bulls Step In? (Ethereum Price Analysis)

Ethereum Price Analysis: Technicals

The Daily Chart

The 4-Hour Chart

Sentiment Analysis

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