After encountering strong resistance and being rejected by it, Ethereum’s price motion has been somewhat tumultuous in the past few weeks. In the case that the market experiences a less minor but still considerable drop in price.
There are several different tiers that could provide support for the overall structure. This prevents the price from going down anymore. Earlier in the month of February, the price was rejected from the $1800 level on the daily chart.
This level also served as the upper border of the enormous symmetrical triangle formation. Since then, it has dropped below the 50-day moving average, which is currently hovering around the $1600 mark.
The price is currently consolidating below the broken moving averages and has not yet shown an impulsive move after the bearish breakout. Presently, the price is below the broken MA.
Cryptocurrency Market Is Unable To Recoup the Lost 50-Day
If the cryptocurrency fails to regain control of the shattered 50-day moving average. The 200-day rising average represents the next possible source of support for the market.
It seems to be moving in a circle close to the $1400 mark right now. This might be followed by the $1300 static zone. On the other hand, a resumption of prices that are greater than the moving average of the previous 50 days.
It is almost clear that it would lead to a breakthrough above the symmetric triangle at some point in the future. In addition to a rally that is constructive in the short term.
When viewed over the course of a time frame of four hours, it is evident that the value has been moving around quite a bit. It falls within a very specific and limited range.
We entered a bear market a few days ago when the price unexpectedly failed to recover after testing the $1650 support level. It has been moving in the other direction all along. This can be seen by looking at the 4-hour timeframe.
There is a chance that $1500 will come under scrutiny in the not-too-distant future. If it loses its footing in the industry, the price could drop below the following support area. That is somewhere in the region of $1350 at this point.
Price/Sales Volume Analysis of Ethereum Buyers and Sellers
The RSI signal is also moving in a range-bound direction. It is still showing values that are lower than 50%. It shows that there is momentum moving in a bearish direction.
Due to this, the likelihood of the market correction continues in the days ahead has grown. Although the RSI indicator is moving laterally, it is still displaying values below 50%.
This is important since Ethereum has been holding below its major resistance levels for weeks. It would be to one’s advantage to conduct research into the mindset of the spot market.
In order to acquire further insights into what the market was going to do next. When it comes to gauging the improvement that applies to this objective, it is important to be mindful of the Take Buy Sell Ratio indicator.
This indicator shows which party of the trade is now trading more fiercely. Whatever side of the business is doing so is revealed. Numbers that are higher than what number one would suggest.
There is a significant amount of emphasis placed on purchasing. A gloomy outlook is associated with the values of the variable that are less than one.
During the previous few weeks, this gauge has been demonstrating a trend that is moving in the other direction, which is downward. It is an indication that the impact of the value in the futures contract is beginning to ease.
This perspective is further supported by the recent price movement, which has been trending toward stability. There has been a steady decline in the indicator, and it is now dangerously close to the vanishing point at 1.
It would mean that the market is once again being driven by bears. This could result in a price decrease in the following weeks if the trend continues as it has been.