The cryptocurrency markets experienced significant declines in the last 24 hours, particularly with Ethereum. Based on technical analysis, Ethereum’s price appears to be heading further downwards on higher timeframes, indicating a bearish trend.
On the daily chart, Ethereum’s price retested the crucial $1,750 level but failed to maintain above it, resulting in a strong rejection to the downside. If the price breaks below the short-term support level at $1,650, it could lead to a deeper drop towards the $1,400 area. Additionally, the 50-day and 200-day moving averages are on the verge of a bearish crossover known as the Death Cross. This negative signal may mark the beginning of another mid-term bearish phase.
Looking at the 4-hour timeframe, it is evident that the $1,750 resistance zone has pushed the price downwards, back towards the $1,650 support level. The market has not shown any signs of rebounding from this support area, as it attempts to break through it. The RSI indicator also indicates the bears are in control as it dropped below the 50% threshold. Therefore, if Ethereum fails to hold above $1,650 and reclaim the $1,750 area quickly, another decline is likely.
An on-chain analysis reveals that Ethereum’s price has recently experienced a significant drop after weeks of consolidation. Examining the taker buy-sell ratio in the futures market can provide insights into the future price movement. The taker buy-sell ratio, shown in the chart, measures the aggressiveness of buyers and sellers. Values above one are considered bullish, while values at one indicate a bearish sentiment. Over the past few months, the taker buy-sell ratio has consistently dropped deeper below one, suggesting a bearish price action. For the price to initiate a new impulsive uptrend, futures traders need to buy more aggressively, as indicated by the metric rising above one.
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