The cryptocurrency market experienced another bullish rally after a short-term price decline. Ethereum was no exception as the price surged, forming a new swing high and currently facing a significant resistance region.
By Shayan
After a short-term decline toward the broken triangle pattern and the 200-day moving average, Ethereum found support and initiated a bullish rally, completing the pullback to the broken level.
After printing three consecutive powerful bullish daily candles, the price reached $1.7K crucial resistance region and formed a higher high pattern at $1780. This indicates that the trend is bullish.
Nevertheless, the $1.7K region acts as a significant resistance and has rejected the price several times. If ETH surpasses the mentioned level, an impulsive rally will be imminent.
The price reversal is more evident on the 4-hour timeframe chart. Ethereum’s decline was halted after reaching the ascending channel’s lower trendline at $1350, resulting in a massive price surge.
However, the price is currently struggling with the channel’s middle boundary, roughly $1640. In case it drops below the trendline, ETH might face a stage of consolidation with a slight decline in price.
On the other hand, if the price finds support at this level, it will likely start a rally to claim the $1.7K level.
By Edris
The Taker Buy Sell Ratio measures whether the bulls or the bears are currently executing their trades more aggressively. Values above one indicate dominant buying pressure, while values below 1 are associated with negative sentiment.
This metric has been on the decline over the last few weeks and has dropped below 1 recently.
This behavior indicates that the bears are currently more aggressive, and futures market sentiment has turned bearish, which could result in a decline in the short term.
In case the Taker Buy Sell ratio drops further, the market could enter another bearish phase, and the bear market could be further elongated.