Is ETH Doomed to Slump to $3K After Getting Rejected at $4K?

Ethereum’s value has did not make its means towards a brand new report excessive and is at the moment experiencing bearish value motion, leaving market members nervous that the bull run could be over.

The asset now stays under $3,500, which has become a key resistance line.

Technical Evaluation

By Edris Derakhshi (TradingRage)

The Day by day Chart

On the each day chart, the worth has entered a bullish part because the starting of November after rebounding from the $2,300 help stage. Nevertheless, the $4,000 resistance zone has rejected the market to the draw back, with the $3,500 stage additionally being misplaced.

Presently, it’s seemingly for the market to drop towards the $3,000 help zone and the 200-day transferring common, situated across the similar value mark. So long as ETH trades above the 200-day transferring common, the general market development will be thought of bullish. In any other case, a deeper drop towards the $2,000 space could possibly be anticipated.

The 4-Hour Chart

Wanting on the 4-hour timeframe, it’s evident that the market has failed to interrupt above the $4,000 resistance stage twice, forming a transparent double-top sample.

With the neckline of the sample, which is the $3,500 stage, damaged to the draw back and the RSI exhibiting bearish momentum, the market may appropriate extra and even consolidate within the coming weeks earlier than it is ready to proceed its upward trajectory.

Sentiment Evaluation

By Edris Derakhshi (TradingRage)

Ethereum Taker Purchase Promote Ratio

Whereas Ethereum’s value has been struggling to proceed its rally and create a brand new all-time excessive, analyzing the futures market sentiment may yield useful insights in regards to the potential causes behind this correction and whether or not it will likely be over quickly or not.

This chart presents the Taker Purchase Promote Ratio metric, which measures whether or not the consumers or the sellers are executing their positions extra aggressively on combination, utilizing market orders.

Because the chart suggests, the 100-day transferring common of the Taker Purchase Promote Ratio has been exhibiting values under one for over a yr now, with the metric at the moment experiencing an enormous drop. This means that the current correction could be because of the promoting stress coming from the futures market reasonably than the spot market, and so long as the metric is trending down, it will likely be tough for the market to get well.