Ethereum has been unable to overcome the $2,000 resistance over the past few days. The price again formed a lower high, confirming the dominant positions of the sellers.
On the daily timeframe, the structure looks bearish. The bulls have repeatedly failed in their attempts to form a higher high.
Now the 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 a given number of periods in the past. The market is considered bearish when the indicator moves below the baseline (red). On the other hand, when it goes above it or approaches zero, a potential reversal becomes more likely.
Right now the index is below the baseline but is also forming a divergence with the price. This happened once in 2021 (in white) and the price jumped to an all-time high.
If the bulls defend the support at $1.7k and the indicator enters the bullish zone, breaking the resistance at $2.2k, a medium-term bullish trend becomes more likely.
Key levels of support: 1700 and 1500 dollars
Key resistance levels: $2200 and $2400
Against BTC, the cryptocurrency recorded a new bottom in the recent downtrend. While the bears were able to push the price below the static support at 0.06 BTC (indicated in blue), the bulls defended the dynamic support (indicated in green). The overall structure on this chart is also bearish. The formation of lower highs and lows indicates no signs of a reversal. As long as the price is trading below the static resistance at 0.065 BTC (highlighted in yellow), a sustained upward move is unlikely.
Key levels of support: 0.060 BTC and 0.055 BTC
Key resistance levels: 0.065 BTC and 0.070 BTC
Taker buy/sell ratio – all exchanges (SMA 14)
Definition: The ratio of buying to selling volume of takers in perpetual swap trades. Values above 1 indicate bullish sentiment. Values below 1 indicate bearish sentiment.
As you can see from the chart, the buying mood dominates the derivatives market. This indicates that takers are filling more buy orders. This can be considered a positive signal in the futures market. However, historical data shows that this growth must remain sustainable in order to have more confidence in the dominance of buyers.
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Cryptocurrency charts from TradingView.
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