The post Is ETH on the Verge of Dropping Below $3.5K? This Pattern Hints at It (Ethereum Price Analysis) appeared on BitcoinEthereumNews.com.

After a brief consolidation near the critical $4K resistance level, Ethereum encountered increased selling pressure, leading to a decline. However, a significant support zone lies ahead, which may curb further downward movement. By Shayan The Daily Chart A closer look at the daily chart shows that after a short period of consolidation near the pivotal $4K resistance, Ethereum faced heightened selling activity, resulting in a notable rejection. This indicates strong selling interest around the previous major swing high of $4K, highlighting aggressive short positions near this key level. Nonetheless, there is a significant support zone ahead, including the 100-day moving average at $3,430 and the 0.5 Fibonacci retracement level at $3,419. This suggests that the current price action may continue its bearish retracement in the short term, with the 100-day moving average and the 0.5 Fib level acting as primary support for buyers. Source: TradingView The 4-Hour Chart On the 4-hour chart, recent consolidation near the $4K level has resulted in a head and shoulders pattern, indicating a lack of bullish momentum and an increase in supply. This well-known pattern suggests a potential short-term bearish reversal. Nevertheless, the price has recently broken below the neckline of this formation, increasing the likelihood of a bearish scenario. Additionally, a bearish divergence between the RSI indicator and the price further emphasizes seller dominance, raising concerns about Ethereum’s future trajectory. Currently, the price is at a critical support level of around $3.6K. If sellers manage to breach this pivotal level, continuing the bearish trend is the most likely outcome. Source: TradingView By Shayan With Ethereum’s price struggling to surpass the $4K mark, traders might be interested in the behavior of futures market participants. The chart below shows the 7-day moving average of the Taker Buy Sell Ratio, which assesses the relative aggressiveness of buyers…

---

Filed under: News - @ June 11, 2024 2:14 am