ETH lags behind as pullback to $2.1K becomes possible

Ethereum has faced major resistance at the $2.8K level, which marks the lower limit of a multi-month wedge pattern.

The price action suggests that it could be completing a pullback, which could drive the price towards the $2.1K threshold.

By Shayan

The daily chart

Ethereum has been struggling with the lower limit of the multi-month wedge at $2.8 thousand for several weeks, suggesting a possible completion of the pullback.

After pulling back towards this key resistance level, the price has entered a period of slight consolidation, reflecting insufficient market demand. Low-volatility action near this resistance suggests the pullback could be nearing its end.

Given the significant supply pressure around the $2.8K mark, a rejection could lead to a decline towards the critical $2.1K support region.

Also, the 100-day moving average is approaching a cross below the 200-day moving average at $3.2k, which could form a “death cross.” This pattern often indicates a bearish outlook for the market, further supporting the expectation of rejection at $2.8K and a subsequent price decline.

Source: TradingView The 4-hour chart

On the 4-hour chart, Ethereum has entered a crucial range between the Fibonacci levels of 0.5 ($2.6K) and 0.618 ($2.7K) after consolidating near the resistance of 2, 8 thousand dollars.

The price is facing strong selling pressure, struggling to break this critical resistance with little upside momentum.

ETH is currently testing the lower boundary of the wedge pattern. If the selling pressure intensifies and the price breaks below this limit, it could confirm the continuation of the bearish trend, targeting the support level of $2.1 thousand.

Close monitoring of price action in the coming days will be essential as the potential for a deeper correction remains high.

Source: TradingView

By Shayan

Analysis of futures market metrics for Ethereum provides valuable information that complements traditional price analysis.

This chart highlights the Taker Buy Sell ratio, one of the most significant indicators in the futures market. It measures the aggregate aggressiveness of buyers versus sellers in order execution.

The Taker Buy Sell ratio recently plummeted to its lowest level in months, indicating substantial selling pressure in the market. However, the metric has started to recover since then, showing a slight increase.

This suggests that buyers are trying to push the price of Ethereum above the critical resistance level of $2.8 thousand. If this upward trend in the ratio continues, the current pullback phase may be prolonged in the short term.

Source: CryptoQuant

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