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HomeAnalysisEthereum's Price May Be on the Verge of a Turnaround

Ethereum’s Price May Be on the Verge of a Turnaround


Ethereum’s price has been following Bitcoin’s downward trend since the beginning of March, but technical analysis suggests that things might be about to change. According to TradingRage, the daily chart shows a descending channel pattern, with the price approaching the $3,000 resistance level. A bullish breakout above this level could lead to a rise toward the higher boundary of the channel and the $3,600 resistance zone.

Source: TradingView

On the 4-hour chart, the price has broken a bearish trendline to the upside, indicating a potential reversal. If the price stays above the trendline and breaks through the $3,000 level, a rally toward the higher boundary of the channel will become more likely.

Source: TradingView

The RSI is approaching 50%, indicating that the market momentum is in equilibrium. The short-term fate of the market can be decided as soon as today.

In addition to technical analysis, sentiment analysis suggests that the perpetual futures market may be indicating a potential turnaround. The Taker Buy Sell Ratio, which measures the ratio of buyers to sellers in the futures market, has been trending below 1 over the last few months, indicating that most futures traders have been selling BTC aggressively. However, the metric is showing signs of recovery, and a rise in the ratio could lead to a market rally as the aggressive supply would shrink.

Source: CryptoQuant

With enough demand from the spot market, a new uptrend could begin soon. The combination of technical and sentiment analysis suggests that Ethereum’s price may be on the verge of a turnaround, and investors may want to keep an eye on the market’s developments in the coming days.

Source: CryptoPotato


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