Ethereum's trajectory has taken a bearish turn after slipping below its 100-day moving average, indicating heightened selling pressure. However, resilience remains at the 200-day MA, instilling hope for a possible recovery.
Recently, Ethereum dipped beneath the crucial 100-day moving average, recorded at $3.1K. This downturn accentuates the intensifying influence of sellers and hints at a looming test of the $3K support zone, a key threshold coinciding with the 200-day MA.
Presently, Ethereum is hovering around this support level. It shows signs of a slight bullish reversal, suggesting emerging buyer demand. The 200-day MA now forms the central defensive fortress for bulls, and its stability will crucially define the short-term course. A breach below this point might usher in a mid-term bearish trend, potentially eyeing the $2.5K support target.
In the 4-hour analysis, Ethereum experienced consolidation near the 0.5 Fibonacci retracement level at $3.2K before succumbing to seller pressure.
This resulted in a decisive drop beneath this critical support, inciting a series of long liquidations and pushing the price towards the 0.618 Fibonacci retracement level at $3K. This juncture is of utmost importance. It marks the last substantial support for buyers. A continuous decline below this threshold could spark further liquidations, propelling the price toward $2.5K.
Nonetheless, Ethereum is currently showing signs of stabilization in this area, suggesting an impending battle between market buyers and sellers.
Ethereum is on the brink at the $3K support level, as sellers intensify their efforts to regain market control. Insights from the Taker Buy Sell Ratio offer a window into prevailing market sentiment and future direction. Upon testing the $3K support, this ratio initially spiked, indicating a temporary surge in buying strength and a defensive move by the bulls. However, this upward momentum was brief, as a subsequent market sell-off coincided with a bearish reversal in the ratio.
Since then, the metric has continually waned, highlighting the growing seller domination. Should this trend persist, the probability of Ethereum falling below the $3K barrier rises, likely triggering increased selling pressure and edging the price closer to the $2.5K support mark. Conversely, a rebound in the ratio may signal renewed buyer interest, potentially stabilizing Ethereum's price at this critical stage.