As Ethereum’s price struggles to reach a new record high, investors are concerned that the bull run may be coming to an end. Currently trading below $3,500, the cryptocurrency faces a key resistance level that needs to be overcome in order to regain bullish momentum.
Technical analysis by TradingRage shows that on the daily chart, Ethereum has been in a bullish phase since November, bouncing back from the $2,300 support level. However, the $4,000 resistance zone has proven to be a major obstacle, leading to a drop below $3,500. The next potential support lies at $3,000 and the 200-day moving average, which will determine the overall market trend.
The 4-hour chart reveals a double-top pattern forming as Ethereum fails to break above the $4,000 resistance level. With the neckline at $3,500 breached and bearish momentum indicated by the RSI, the cryptocurrency may see further correction or consolidation before resuming its upward trajectory.
Analyzing the sentiment in the futures market through the Taker Buy Sell Ratio metric provides valuable insights into the recent correction in Ethereum’s price. The metric has been trending below one for over a year, indicating aggressive selling pressure from futures traders. As long as this trend continues, it may be challenging for Ethereum to recover and achieve new highs.
Overall, the market sentiment for Ethereum remains cautious as the cryptocurrency struggles to break through key resistance levels and faces selling pressure from futures traders. Traders are advised to monitor the $3,000 support level and the 200-day moving average for potential market direction, as a break below could lead to further downside towards $2,000. Despite the current bearish market sentiment, Ethereum’s long-term prospects remain positive, with potential for a recovery once selling pressure eases.
