Ethereum Price Faces Key Resistance at $2,400, Potential Double-Top Pattern May Trigger Pullback

Reportedly, the Ethereum price is encountering significant resistance around the crucial $2,400 region, indicating an ongoing struggle between buyers and sellers. Despite efforts, the price has been unable to surpass its previous swing high of $2,403, leading to a slight pullback and the potential formation of a double-top pattern.

The daily chart reveals that after a period of sideways consolidation near the critical $2,300 mark, the price surged in an attempt to reclaim its previous daily swing high at $2,403. This upward movement is underscored by the occurrence of a golden cross on the daily chart, indicating an overall bullish sentiment for Ethereum's price action. However, the price faced resistance upon reaching a critical zone formed by the upper boundary of a multi-month wedge, coinciding with the previous daily swing at $2,403, potentially forming a double-top pattern.

Despite these challenges, the emergence of a potential head and shoulders pattern, a widely recognized bearish reversal formation, is notable. If the price breaks below the neckline of both the head and shoulders pattern and the double-top pattern, it could signal a short-term downward movement. This retracement might lead the price back to the substantial support range at $2,000.

A more detailed analysis of the 4-hour chart reveals increased demand within the critical range between the 0.5 ($2,211) and 0.618 ($2,166) levels of the Fibonacci retracement indicator. This demand led to an impulsive price spike attempting to breach the $2,400 daily swing high. However, Ethereum faced a slight rejection, resulting in a retracement toward the static support level at $2,300.

Despite this retracement, Ethereum's price appears to be confined within a crucial range, encompassing the significant $2,400 resistance region and the substantial static support range characterized by the 0.5 ($2,211) and 0.618 ($2,166) Fibonacci retracement levels, along with the dynamic support provided by the multi-week ascending trendline. A breakout in either direction from this range could signal the initiation of a new impulsive trend.

Within the domain of on-chain data analysis, exploring the sentiment reflected in the futures market provides valuable insights into Ethereum's overarching perspective. The 30-day standard moving average of the Ethereum taker buy-sell ratio indicates whether buyers or sellers are executing more aggressively on aggregate (taker orders). Values below 1 are perceived as bearish, while values above 1 are indicative of bullish sentiment. The taker buy-sell ratio has consistently remained below 1 over the past six months. Despite the recent uptrend in price, the metric has entered a consolidation phase, signaling an overall bearish sentiment among futures traders. Should the taker buy-sell ratio suddenly surge above 1 again, it would suggest a shift to a full-fledged bull market, potentially propelling the price to new yearly highs.