Ethereum Rejected at $1.3000 But Is the $1000 Drop Back in Play? (ETH price analysis)

After yesterday’s Fed rate announcement, Ethereum price seems to have taken a turn and was rejected from a major resistance area. Another bearish phase may start soon if the market does not recover in the next few days.

Technical Analysis

past: Idris

daily chart

On the daily chart, the price failed to break above the $1300 level and is currently declining in a downward trend. The 50-day moving average was also tested around the same area, but the price also failed to break above it.

If the price somehow breaks the $1,300 level and the aforementioned moving average, then the 200-day moving average around the $1,400 mark would be the first potential hurdle.

However, given the current market structure, which points to a failed break from the $1300 level, a decline towards $1000 would be the most likely outcome. The $1000 area will be the key level to watch as it could lead to another catastrophic crash if broken.

Source: TradingView

4 hour chart

During the four-hour period, the current market structure becomes clearer. The price rejected a rally from the $1300 resistance level and is currently bound to retest the $1240 support area.

Rejection was signaled in advance, as the RSI was floating around the overbought territory, indicating a possible bearish reversal in the near term. The popular oscillator has now fallen below the 50% mark, indicating bearish control with momentum shifting to the downside.

Unless the market structure changes in the next few days, a retest of the $1240 support level and even a breakdown towards the stronger $1100 area in the coming weeks is likely.

Source: TradingView

sentiment analysis

Ethereum trader buy/sell ratio

While the price of Ethereum has shown relative resilience by not posting a new low during the FTX crash, the futures market may be indicating that things are about to change.

This chart shows the 50-day moving average of the Taker buy-sell ratio, which is mainly used to assess futures market sentiment, as it indicates whether the bulls or bears are more aggressive.

Values ​​above 1 are associated with bullish sentiment. On the contrary, values ​​less than 1 indicate bear dominance.

Shifts above or below this boundary are also significant, as a dip of the scale below March 1 indicates an eventual collapse, which began shortly after. On the contrary, when the ratio rose above 1 in June, the crash stopped, the market consolidated, and even saw price gains in the short term.

At the moment, the Taker Buy Buy Sell ratio is rapidly approaching 1, which indicates short selling in the futures market.

Should the metrics fall below 1, bears will reassert their dominance, and another crash could be on the horizon for Ethereum.

Source: CryptoQuant

Ethereum Post Denied At $1.3k But Is Dip To $1k Again In Play? (ETH Price Analysis) appeared first on CryptoPotato.

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