Ethereum
Here’s the most likely level for recovery after ETH’s 5% daily drop
As Ethereum price continues to decline, investors are wondering if the bull market is over. However, there is still a key support level that can serve as a basis for a recovery.
Technical analysis
The daily chart
On the daily chart, the price has been trending down within a broad descending channel pattern. Over the past few days, the market failed to reclaim the $3,500 level and fell following a bearish rejection.
Currently, a decline towards the $3,000 support level could be expected, which coincides with both the lower boundary of the channel and the 200-day moving average.
While this confluence of support elements makes $3,000 a strong support area, if it is breached things can get worse very quickly.
The 4-hour chart
The 4-hour chart clearly shows the price rejection from the $3,500 resistance level. The short-term support area at $3,350 is also being broken to the downside, making $3,000 a likely upcoming target for ETH.
and, investors should keep an eye on the RSI as it has entered the oversold zone, which could indicate a potential recovery soon.
Sentiment Analysis
Taker/Buy/Sell Ratio
Analyzing Ethereum futures market indicators can be a great complement to price analysis. This chart illustrates one of the most useful indicators in the futures market, the Taker Buy Sell ratio.
It measures whether buyers or sellers are more aggressive in executing their orders overall.
As the chart shows, after the rejection from the $4,000 level, a huge volume of sell orders were executed in the futures market, bringing the Taker Buy Sell ratio to its lowest value in recent months. This indicates that futures traders believe that the price will fall further in the short term.
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