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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

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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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