Ethereum failed to break the resistance at $2000 in the last few days. The price once again formed a lower high, reaffirming the dominant positions of sellers.
The Daily Chart
On the daily timeframe, the structure appears to be bearish. The bulls have repeatedly failed in their attempts to form a higher high.
Now, the momentum indicator is a tool that can be used to gauge the momentum of a financial instrument. Simply put, it compares the current price with the previous price from a given number of periods in the past. The market is considered to be bearish when the indicator moves below the baseline (in red). On the other hand, when it goes above it or towards zero, a potential reversal becomes more probable.
Right now, the index is below the baseline, but it’s also forming a divergence with the price. This has happened once during 2021 (in white), and the price surged to an all-time high.
If the bulls defend the support at $1.7K and the indicator enters the bullish area by breaking the resistance at $2.2K, a bullish trend in the mid-term would become more probable.
Key Support Levels: $1700 & $1500
Key Resistance Levels: $2200 & $2400
The ETH/BTC Chart
Against BTC, the cryptocurrency recorded a new bottom in the recent downtrend. While the bears were able to push the price below the static support at 0.06 BTC (in blue), the bulls defended the dynamic support (in green). The overall structure in this chart is also bearish. The formation of lower highs and lows indicates that there is no sign of a reversal. As long as the price trades below the static resistance at 0.065 BTC (in yellow), a steady upward increase remains unlikely.
Key Support Levels: 0.060 BTC & 0.055 BTC
Key Resistance Levels: 0.065 BTC & 0.070 BTC
Taker Buy Sell Ratio – All Exchanges (SMA 14)
Definition: The ratio of buy volume divided by sell volume of takers in perpetual swap trades. Values over 1 indicate bullish sentiment is dominant. Values under 1 indicate bearish sentiment is dominant.
As seen in the chart, Buying sentiment is dominant in the derivatives market. It indicates that Takers fill more buy orders. This can be considered a positive signal in the derivatives market. However, historical records show that this increase must remain sustained to have more confidence in buyer dominance.