The upcoming days will be crucial to see whether ETH can hold the critical level or continue its negative sentiment.
The Daily Chart
After breaking above the upper trend-line of the symmetrical triangle and consolidating for an extended period, the price of Ethereum has declined and is currently retesting the previous breakout level at $1450.
If ETH sustains this level, traders can expect another bullish leg toward the crucial resistance level of $1700K.
However, if the price drops below the trend line, a plunge toward the $1.2K support level may be imminent. Nevertheless, the upper trend-line of the triangle aligns with the 200-day moving average at $1450, providing a solid support level.
The 4-Hour Chart
The price of ETH has been following an ascending price channel (as shown below). However, it recently dropped below the middle equilibrium line, resulting in a cascade. Nevertheless, the price has now reached the channel’s lower boundary, temporarily finding support.
The price is ‘stuck’ in a tight range between the lower threshold at roughly $1410 and the static resistance region at $1500. ETH is likely to break out of this range in the coming days, and the direction of the breakout will determine the direction of the next short-term for ETH.
The Taker Buy/Sell Ratio is an indicator that helps understand market sentiment by indicating whether there is more buying or selling activity.
During ETH’s recent bullish leg, we observed a spike in this metric, confirming a positive market sentiment. However, when the price entered a consolidation phase and declined significantly after that, the metric dropped below one, indicating a change to a strong bearish sentiment.
Consequently, the metric plummeted to a new multi-month low, suggesting that the market is unlikely to enter a bullish stage unless the metric reclaims a value above one.
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Cryptocurrency charts by TradingView.