Ethereum Tumbles 5% Weekly, Here_s the Imminent Support to Watch (ETH Price Chart)

Ethereum’s price has been oscillating in a tight range below the $2,000 psychological resistance level, failing to break higher. Yet, several support zones are available for investors to feel confident that the market will not crash.

Technical Analysis

By: Edris

The Daily Chart:

On the daily chart, the price has been going through choppy action, following the breakout above the $1,800 level and the 50-day moving average around the $1,850 mark.

The aforementioned moving average is currently providing support for the market. However, in case of a breakdown, the $1,800 level and the 200-day moving average trending around the $1,700 mark are potential support elements for the price to rebound.

Moreover, the RSI indicator provides little insight into this timeframe, as it has been running flat around the 50% threshold, indicating momentum equilibrium.

Source: TradingView### The 4-Hour Chart:

Things look a bit clearer on the 4-hour chart, as the price has been rejected from the $1,920 resistance level recently. The short-term support level at the $1,840 mark is currently being tested, holding ETH from dropping further.

However, there is a high probability for the mentioned level to break down, resulting in a sharp decline toward the $1,760 support zone. On the other hand, if ETH breaks above the $1,920 area, the market will likely enter a bullish phase once more, with the price surging toward the $2,000 level and even higher in the coming weeks.

Source: TradingView## Sentiment Analysis

By: Edris

Ethereum Taker Buy Sell Ratio

Ethereum has been consolidating lately, failing to break above the key $2,000 level. While the spot market seems strong, the derivatives market is seemingly responsible for the price’s failure to rally higher.

This chart represents the taker buy-sell ratio (with a 100-day exponential moving average applied), which is a useful metric in uating the futures market sentiment. Values above 1 indicate aggressive buying pressure; values below 1 are associated with dominant selling pressure.

Analyzing the chart, it is evident that the metric has once again failed to rise above 1 and is currently on a steep decline. This signal indicates that futures traders are aggressively shorting ETH, as they do not expect the market to break above the $2,000 level.

The resulting selling pressure is currently preventing the market from continuing its uptrend. However, in case the spot market demand prevails against the futures market supply, a bullish breakout higher would be imminent.

Source: CryptoQuant