🔥 Calm Before the Storm? Ethereum Charts Signal Explosive Potential
After months of rises, Ethereum's price has dropped 5% in the last week. Since yesterday, ETH has traded between $3,500 and $3,700, currently at $3,633.
This price fluctuation followed a market cooldown, with traders profit-taking following Ethereum's rise. Recent on-chain and derivatives market data suggests Ethereum may consolidate.
Darkfost of CryptoQuant predicted more selling pressure and short-term weakness in the ETH futures market.
Ethereum has failed to break the $4,000 resistance level after many efforts, suggesting market reluctance.
Darkfost noted that the futures market has changed significantly in recent weeks. Ethereum's taker buy/sell ratio dipped to 0.87, one of the lowest this year, according to Binance.
Sell orders dominate purchase orders when the ratio is below 1, indicating traders are closing long positions or starting shorts. This trend started around July 18 and has been generally negative since, restricting upward momentum, the analyst added.
Additionally, the seven-day and 30-day SMAs have begun to fall, which may indicate market slowdown.
Binance has the most ETH futures open interest, making its opinion extremely significant. With sellers in control, the data shows this consolidation period may continue until purchasing activity rises.
Ethereum's Long-Term Outlook is Mixed
Ethereum's near-term market data suggests a rough moment, although some experts are optimistic. X's popular market pundit predicted a $8000 price objective.
A massive monthly triangle pattern on Ethereum's price structure might lead to a breakthrough and a big surge.
X traders believe Ethereum might reach new highs if critical resistance levels are overcome and market demand resumes.
