ETH Battles With $1.9K as Shanghai Upgrade Looms (Ethereum Price Analysis)

In recent months, Ethereum has seen a huge price rally, breaking multiple resistance levels. However, the bullish momentum appears to be fading, and the cryptocurrency is currently struggling to continue its bullish trend. So far, ETH is struggling to hold its ground and clear a major resistance area.

Technical Analysis

by Cheyenne

daily chart

In March 2023, Ethereum price saw a significant rally when it found support at the 200-day moving average of $1.4K. However, as the price approached the crucial $2k resistance level, the bullish momentum started to fade.

Because of that, and the strength of the $2K resistance area, and the divergence between the price and the RSI, it looks like ETH is likely to enter a consolidation correction area soon. It is necessary to watch the RSI closely, as it is approaching the overbought area, which may increase the chances of a correction or reversal.

4 hour chart

The rally stopped when it reached the upper trend line of the ascending channel on the 4-hour time frame. Although the price tried to cross the trend line for the second time, it was rejected, resulting in a slight decline. If the cryptocurrency can breach the $2k resistance area and the upper boundary of the channel, it could trigger an upward impulse towards the next resistance level.

However, if the price declines, the middle boundary of the channel and the $1.7k level will act as important support areas. Notably, ETH has formed a double top price action pattern at the $2k resistance area, which confirms the bearish scenario.

by Cheyenne

The price of Ethereum has increased in recent months, approaching the $2,000 level. While some investors are optimistic that the bear market is about to end, the futures market is showing a worrying sign.

This chart displays the Taker Buy Sell ratio for Ethereum, which determines whether bulls or bears are executing orders more aggressively and helps predict short-term market movements. Positive values ​​are considered bullish, while negative values ​​are interpreted as bearish.

At the moment, the Taker Buy Sell percentage has been decreasing continuously and has dropped below zero. This indicates that a decline or even a reversal in the value of Ethereum may occur in the following weeks. It is important to monitor this metric closely as it provides valuable insights in the short term.