Following a revival in buying interest and demand, Ethereum’s price has surged, reclaiming the 100 and 200-day moving averages.
This price action suggests a shift towards a potential rally, with buyers targeting a new yearly high in the mid-term.
Technical Analysis
By Shayan
The Daily Chart
A detailed analysis of Ethereum’s daily chart reveals that after a notable increase in buying pressure near the substantial $3K support region, the cryptocurrency initiated a bullish spike, surpassing the 100-day ($3340) and 200-day ($3152) moving averages.
Additionally, ETH has reclaimed the significant resistance region of $3.5K, a crucial barrier for buyers in recent months. This price action indicates a strong buyer presence in the market, aiming for a new yearly high.
However, Ethereum has formed a sideways wedge pattern over the recent months. It is expected to continue its upswing after a short-term period of market consolidation, aiming to breach the wedge’s upper boundary at $3.7K. Successfully surpassing this level could lead to a new yearly high above $4K.
The 4-Hour Chart
On the 4-hour chart, an increase in bullish momentum led to an impulsive surge, breaking the multi-month descending trendline.
This impulsive move also saw the price reclaim the significant $3.3K resistance region, previously filled with supply. This development reflects strong buyer interest in the market, aiming for higher levels in the long run.
However, Ethereum reached its prior major swing high in the 4-hour timeframe, resulting in sideways consolidation.
This swing serves as a robust resistance level, and breaking above it could pave the way for another impulsive surge toward the key $3.7K resistance zone. The ongoing consolidation phase is a positive sign for the market, confirming the recent breakout above the trendline and completing a pullback to it. If the price surpasses its prior central pivot of $3524, the continuation of the bullish movement will become imminent.
Sentiment Analysis
By Shayan
While Ethereum’s price has experienced a bullish reversal, a closer examination is essential to determine if the bullish trend will persist. The chart highlights the Taker Buy/Sell Ratio, a crucial metric for evaluating futures market sentiment. Values above 1 indicate aggressive buying by bulls, while values below 1 suggest bearish selling pressure.
As depicted in the chart, the Taker Buy/Sell Ratio surged above 1, simultaneously with the bullish revival in Ethereum’s price. This surge indicates strong buying interest in the perpetual market, suggesting a notable bullish sentiment. If this upward trend in the Taker Buy/Sell Ratio continues, it confirms a potential mid-term bullish trend in the market, with the price likely rallying toward higher values.
