More Troubles Ahead for ETH Following the Failure at $2K? (Ethereum Price Analysis)

Ethereum price has once again failed to break the $2,000 psychological resistance level. While the PA has been bearish for the last few days, there is hope that the market will recover soon.

Technical Analysis

By: Edris

Daily Chart:

On the daily timeframe, the price has since been rejected around the key $2,000 level. The 50-day moving average provides support near $1,850 for now.

However, if it breaks, the 200-day moving average located around the $1,800 level could be counted as the next strong support zone. On the other hand, if the price rebounds from one of these levels, a rally towards $2,300 will be very likely in the coming weeks.

4 Hour Chart:

Looking at the 4-hour chart, price is supported at the $1,850 level, following a bearish reversal from the $1,930 resistance zone. While the market is recovering, there is still a high probability of a break of the $1,850 level in the short term.

In this scenario, further decline towards $1,750 can be expected. The RSI indicator also shows a value below 50%, pointing to the current bearish momentum. Hence, another bearish move is likely to occur before a rally towards the $2,000 mark or higher can be expected.

Sentiment Analysis

By: Edris

Ethereum price is currently consolidating around the $2,000 level with no intention of going higher.

One of the most valuable metrics in evaluating futures market sentiment is the taker trade-to-buy ratio, which indicates whether buyers or sellers are executing their trades more aggressively. Values ​​above 1 indicate bullish sentiment, while values ​​below one are associated with bearish sentiment.

The metric drops below 1, indicating that sellers are selling aggressively. This pressure is one of the main reasons for the failure of prices to go higher. Moreover, this behavior can also lead to a bearish decline in price if nothing changes soon.