According to CryptoPotato, Ethereum's price has been experiencing a decline over the past few weeks after facing a decisive rejection from a significant resistance level. Despite several support levels nearby, the price seems likely to continue its downward trend. On the daily chart, the price has been forming a large ascending channel over the last year, recently testing the higher boundary of the channel at the $2,750 resistance level but failing to break above it. This rejection has led to a drop below the $2,400 support zone, with the Relative Strength Index showing values below 50%.
The 4-hour timeframe shows the market consolidating between the $2,100 and $2,400 levels. A breakout to the upside could target the higher boundary of the large channel, while a breakdown of the $2,100 level would likely result in a drop toward $2,000 or lower. Based on the daily chart, further downside appears more probable.
As Ethereum's price fails to climb above the $2,500 level, investors may be curious about the behavior of futures market traders. The 100-day moving average of the Taker Buy Sell Ratio, which measures the ratio of aggressiveness of buyers compared to sellers, has not recovered above one and has been dropping aggressively over the last few weeks. The ratio is approaching values previously seen during the all-time high range in late 2021, indicating a potential shift towards a bearish trend if things remain the same.
