Bearish Trends Unveiled

The Daily Chart Analysis

Upon examining the daily chart, we observe a recent breach beneath the critical $1,650 support level. However, it's worth noting that this level is presently undergoing a retesting phase. Failure to witness a price ascent beyond this broken threshold in the near future may signify a higher likelihood of a continued bearish trend.

Moreover, we have identified a recent bearish crossover between the 50-day and 200-day moving averages, signaling a potential initiation of a downtrend in the forthcoming weeks. This occurrence adds weight to the bearish sentiment in the current market landscape.

Source: TradingView 

Exploration of the 4-Hour Chart

When shifting our focus to the 4-hour timeframe, a conspicuous development emerges. After an extended period of scrutiny, the $1,650 support zone has finally yielded, with the price presently retracing towards it.

Should the market manage to surge beyond the $1,650 level within the upcoming days, it could pave the way for an impending rally towards $1,750. Conversely, if such an ascent does not materialize, we may witness a deeper downturn, instilling apprehension among investors and raising questions about the potential longevity of the ongoing bearish phase.

Source: TradingView 

Analysis of Ethereum Taker Buy Sell Ratio

In the preceding weeks, Ethereum's price has experienced a continuous decline, encountering multiple rejections at the $2,000 resistance level. Delving into the futures market sentiment offers valuable insights into the current scenario.

Displayed below is the taker buy-sell ratio, accentuated by a 30-day moving average, enhancing its visual impact. This metric serves as an indicator of whether buyers or sellers are executing their orders with greater aggressiveness. Positive values align with bullish sentiment, while negative values signal a bearish outlook.

Over the past few months, this metric has consistently trended within the negative territory, underscoring the bearish stance of futures market traders towards ETH. As long as this condition persists, the likelihood of a bullish reversal in the short term remains minimal.

Source: CryptoQuant