According to CryptoPotato, Ethereum has entered a consolidation correction phase, retracing back toward the broken lower boundary of the multi-month wedge. This movement suggests a potential pullback to the previously breached level, indicating a likely continuation of the bearish trend in the upcoming days.
A closer examination of Ethereum’s daily chart shows that the cryptocurrency has entered a corrective phase, with price action signaling a potential pullback toward the wedge’s broken lower boundary at $2.8K. After finding support near the crucial $2K level, ETH initiated a bullish retracement, moving back toward this key resistance zone. However, this area is likely filled with supply, leading to increased selling pressure. If the cryptocurrency fails to break above $2.8K, it will confirm the completion of the pullback, suggesting a continuation of the initial bearish trend. The key levels to watch this week are the $2.8K resistance and the $2K support.
On the 4-hour chart, Ethereum’s consolidation phase is more pronounced as the price retraces toward the $2.8K resistance. However, the cryptocurrency is currently within a critical range, between the 0.5 ($2.6K) and 0.618 ($2.7K) Fibonacci levels acting as significant resistance. ETH has also formed an ascending wedge pattern, a known bearish continuation formation, with the potential for a downward break. If the price fails to push above this resistance zone and drops below the wedge’s lower boundary, the bearish trend will likely continue toward the $2K support level. Monitoring Ethereum’s price action in the coming days is crucial for anticipating its next move.
Following a recent bullish retracement in Ethereum’s price, market participants are uncertain about the sustainability of this upward move. To better understand current market dynamics, an analysis of the futures market, specifically the Taker Buy/Sell Ratio, provides valuable insights. This ratio measures the aggressiveness of buyers versus sellers in executing orders. After Ethereum faced rejection at the $3K level, the Taker Buy/Sell Ratio cascaded, indicating a significant volume of market sell orders. Although the metric saw a recovery during a subsequent bullish corrective movement, it still hovered near zero, suggesting that the bullish move lacked strength. The inability to reclaim previous levels implies that sellers maintain the upper hand. The ratio has recently declined, signaling that sellers are likely preparing to push Ethereum’s price lower. Unless there’s an unexpected surge in demand, the current trend points toward a potential continuation of bearish pressure in the coming days.
