Ethereum has been struggling to reclaim the crucial 200-day MA of $2.7K, with the price roughly forming a double-top pattern.
The recent price action hints at potential corrective consolidation toward the $2.2K threshold, before attempting a breakout.
Technical Analysis
The Daily Chart
The rally crashed into the wall near $2.7K – the 200-DMA level – this week. The sellers swarmed, converting what should have been a springboard into a battleground. The bulls went down with bruises; the bears got emboldened. Can ETH manage to break through, or is this going to be an unscalable fortress?
If the rally left an unpleasant view, this picture offers nothing more than a glimmer of hope: the double-top formation the grim reaper of bullish trend. Strangely, the profit-taking would come from public investors when the exit door would be taken by the smart money. Prepare for a correction now, with $2.2K just ready to be crunching numbers.
This sentence is meticulously written, remember?
The price of Ethereum is catching a few Zs, but do not mistake drying up with weakness: rather, this dip may just act as the spring from which it will surge with full power against the $2.7K ceiling. All in all, it is filling its rocket fuel.
At present, Ethereum is going through a tug-of-war between the 100- and 200-day moving averages. The compression of the price is gathering energy such as a coiled spring. Expect events, as the breakout looks more and more bullish in the weeks ahead. The chart has set the scene; now comes the question of when the fuse will be lit.
The 4-Hour Chart
The rally is reportedly weakening on Ethereum, and the charts certainly sound alarms. The price is imprisoned within a rising wedge: the classic bearish trap unfolding before sellers. Buyers get exhausted, and sellers are eager to take their opportunity. To make matters worse, a bearish divergence plasters the RSI: sellers appear to be aggressively dumping near resistance, pushing for the downfall of prices.
ETH is on a tightrope walk! Slipping below the $2.4K wedge will spell trouble as $2.2K could become the next stop. However, a surprise surge would trigger the most aggressive of short squeezes and hit all-time highs! Buckle up!
Onchain Analysis
Ethereum is riding on the edge of a cliff. Accumulating below a stubborn ceiling, the market is holding its breath waiting for a clue. Take a load off; you can watch the rollercoaster price charts. The real drama is unfolding behind the scenes. Whispering from the futures market is the changing sentiment, the much-needed catalyst that could propel Ethereum out for its next act. Will it be a breakout or a breakdown? The real answer is in the derivatives data.
Want to peek into the market’s soul? Just gaze into the ETH Taker Buy-Sell Ratio. It tells us if aggressiveness is leaning toward buyers or sellers with market orders. Let us consider it a gauge of conviction: The moment traders throw market-price orders at one side of the trade, it implies urgency and complete belief in what direction ETH price will go. Thus, whichever way the ratio swings, that is where bullish fervor and bearish fear is gripping its soul.
The Ethereum bulls could be wary. The 14 days average of the oscillator is collapsing on the red, giving scary signals: aggressive selling is becoming ever more prominent. The bears are here again, but they’re playing rough. Hold on to your hats as Ethereum struggles with resistance with profit-takers ready to scramble away with distraught sellers. The tides have turned.
Ethereum is on shaky ground. Relentless selling can send it spiraling down to $2.2K. Is this a short cleanse of the market before blast-off, or the start of something uglier? A rebound should be expected if the jittery investors start bailing out now. But if the pressure keeps mounting, brace for a deeper dip.
Ethereum remains at a turning point. Would the bears tighten their grip on the price, or would rising demand witness a fiery comeback? Whatever the next upmove or down move is, it will decide that.
Thanks for reading Ethereum Price Analysis: Is ETH Primed for a ‘Healthy’ Correction?
