Ethereum has recently faced slight rejection at the 200-day moving average of $2,600, indicating the presence of sellers. However, further consolidation and a deeper correction may be underway for this cryptocurrency.
Daily Chart
Ethereum once again faces rejection at the critical 200-day moving average near $2,600, reflecting ongoing selling pressure and a lack of bullish momentum. This prolonged consolidation below the 200-day MA signals buyer exhaustion and increases the likelihood of a deeper correction.
Price remains stuck between the 100-day MA at $2,000 and the 200-day MA at $2,600, forming a mid-range. Given the current weakness, a decline towards the lower boundary of the range seems reasonable. However, if buyers attempt to reclaim the 200-day MA, a swift short squeeze could push prices back to the $3,000 resistance area.
4-Hour Chart
On lower timeframes, Ethereum continues to oscillate in a rising wedge pattern, often a bearish formation. The recent rejection from the upper boundary around $2.6K confirms seller dominance, with price currently oscillating near the lower edge of the wedge.
A breakout from this level could initiate a further bearish move towards the support area of $2,200. Until a decisive breakout occurs, price action is expected to remain range-bound within the wedge.
ETH Price: Sentiment Analysis
Ethereum continues to hover just below a significant resistance level, leaving investors uncertain about the likelihood of an upcoming bullish breakout.
An important metric to watch is the buy-sell ratio of ETH buyers, tracking the dominance of aggressive market orders, executed at the current market price, indicating whether buyers or sellers are driving momentum. These orders often indicate urgency and confidence among traders.
Recently, the 30-day moving average of this ratio has been trending downwards, signaling an increase in strong selling activity. This change indicates rising bearish pressure, with profit-taking and distribution likely to increase as Ethereum struggles to overcome resistance.
If this selling trend continues, it could lead to a deeper correction, with the $2,200 level emerging as a key support. However, if the recent sell-off is primarily driven by short-term traders or so-called 'weak hands', it could mark a healthy consolidation phase, potentially setting the stage for a new bullish breakout.
In summary, Ethereum's next major move will largely depend on whether the current selling pressure intensifies or gradually decreases within the context of fundamental mid-term demand.
