Ethereum has failed to break the $2000 resistance level over the past few days. Prices once again formed lower levels, which confirms the sellers’ dominant position.
On the daily time frame, the structure looks bearish. The bulls have repeatedly failed in their attempts to make high altitudes.
Now, momentum indicator is a tool that can be used to measure the momentum of a financial instrument. Simply put, it compares the current price with the previous price for given periods in the past. The market is considered bearish when the indicator moves below the baseline (in red). On the other hand, when it moves above it or towards zero, the potential reversal becomes more likely.
Right now, the index is below the baseline, but it is also forming a divergence with the price. This has happened once (in white) during 2021, and the price has hit an all-time high.
If the bulls defend the support at $1.7K and the indicator enters the bullish zone by breaking the resistance at $2.2K, a bullish trendline will become more likely in the medium term.
Key Support Levels: $1700 and $1500
Major Resistance Levels: $2200 and $2400
Against BTC, the cryptocurrency has registered a new bottom in the recent downtrend. While the bears were able to push the price below the stable support of 0.06 BTC (in blue), the bulls defended the dynamic support (in green). The overall structure in this chart is also bearish. The rise and fall indicates that there is no sign of reversal. As long as the price trades below the stable resistance of 0.065 BTC (in yellow), a sustained upward move is unlikely.
Key Support Levels: 0.060 BTC and 0.055 BTC
Major Resistance Levels: 0.065 BTC and 0.070 BTC
Taker Buy Sell Ratio – All Exchanges (SMA 14)
definition: The ratio of the buy volume divided by the sell volume of the takers in perpetual swap trades. A value greater than 1 indicates that the bullish sentiment is dominant. A value of less than 1 indicates that bearish sentiment is dominant.
As seen in the chart, the buying sentiment dominates the derivatives market. This indicates that takers fill more buy orders. This can be considered a positive sign in the derivatives market. However, historical records suggest that this growth must be sustained for more confidence in buyer dominance.
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Cryptocurrency charts by TradingView.