Why is ETH lagging behind the crypto market? (Ethereum Price Analysis)

After breaking above the middle boundary of the descending price channel, Ethereum has temporarily lost its bullish momentum, moving slightly closer to the crucial resistance of $2.8 thousand.

The next price action around this level will play a decisive role in shaping Ethereum’s mid-term trajectory, with potential outcomes depending on whether buyers can overcome the selling pressure.

By Shayan

The daily chart

Ethereum’s daily chart reveals that after a retracement towards the middle threshold of the descending price channel, the market faced lower trading activity, leading to a slight consolidation stage with minimal volatility.

During this consolidation, the price of ETH has pulled back slightly towards the significant resistance at $2.8K, a critical level that aligns with Ethereum’s previous major swing high.

This price range is expected to act as a strong barrier, with considerable supply here, making it a key battleground for buyers and sellers. A break above could indicate continuation of the uptrend and a shift to bullish sentiment in the market, while rejection would suggest the possibility of a reversal or consolidation towards the $2.5K support.

Source: TradingView The 4-hour chart

On the 4-hour chart, Ethereum’s bullish momentum has declined from the 0.5 ($2.6K) to 0.618 ($2.8K) Fibonacci retracement zone, forming a three-unit pattern, an indicator bass technician

This suggests that sellers are gaining strength in this price range, which has historically been an area of ​​robust resistance. If the sellers assert control, a bearish pullback to the lower boundary of the rising flag pattern, around $2.4K, could follow.

Conversely, if buyers manage to regain control and push the price above the $2.8K resistance, Ethereum is likely to extend its uptrend towards the next significant target of $3K, marking a potential breakout and continuation of the upward momentum.

Source: TradingView

By Shayan

Analysis of key metrics of perpetual markets can provide valuable insight into possible future price movements. One such metric is Taker’s bid/ask ratio, which measures the ratio of buy orders in the market to sell orders in the futures market.

Because market orders directly influence price action, this relationship can help anticipate changes in market sentiment and direction.

Over the past few months, the 30-day moving average of Taker’s bid/ask ratio for Ethereum has consistently remained below 1.

This suggests that sellers have been more aggressive than buyers, increasing market supply. However, the ratio has recently rebounded alongside a price rise from the $2.1K support zone, indicating a potential shift in market sentiment. As the ratio approaches the critical threshold of 1, selling pressure in the futures market may be diminishing. If this upward trend persists in Taker’s buy/sell ratio, it could mean a reduction in aggressive selling, setting the stage for a market rally.

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