September 25, 2023

It looks like Ethereum has failed in yet another attempt to convincingly break above $1,700, showing that the buying pressure is slowly waning. The question is whether the momentum will pick up or whether the bears will take the opportunity to push the price down.

Technical analysis

With Grizzly

The Daily Chart

The daily chart shows that the solid resistance in the $1,700-$1,800 range is far from over. This resistance zone, which includes the 100-day moving average (in white), is seen as the main obstacle for bulls on the way to $2000. A break and close above it would signal the start of a new uptrend targeting $2,200 (in blue), which overlaps the 200-day moving average (in purple).

Contrary to this assumption, if demand in this area dries up and bears dominate the market again, the potential downside may extend to the support zone in the $1,280-$1,350 area (in green).

Currently, the structure has not changed and until lower highs and lower lows are formed, bullish sentiment prevails.

Basic levels of support: $1500 & $1350
Basic Resistance Levels: $1800 & $2200

Daily moving averages
MA20: $1589
MA50: $1323
MA100: $1681
MA200: $2294

Source: TradingView

The ETH/BTC chart

Against Bitcoin, buyers completely dominate the market. All corrective efforts on the lower time frames are quickly absorbed. Bulls are trying to keep the price above 0.07 BTC (in red). At this point, it looks more likely to test the resistance at 0.75 BTC. This is where bears may make a comeback. The uptrend will remain strong as long as ETH trades above the horizontal support at 0.065 BTC (in green).

Basic levels of support: 0.065 & 0.06 BTC
Basic Resistance Levels: 0.073 & 0.075 BTC

Source: TradingView

Sentiment Analysis

Receiver Purchase Sales Ratio
The ratio of buying volume divided by the selling volume of buyers in continuous exchange transactions.

Values ​​above 1 indicate that bullish sentiment is dominant.
Values ​​below 1 indicate that bearish sentiment prevails.

Apparently, recipients have filled additional buy orders in the past three months. This caused Ethereum to experience a significant spike in price. But as of July 18, that metric is moving downward. Although still above the baseline (in green), it suggests that the strength of buyers on the market side is gradually waning. This issue is likely due to profit taking around the stable resistance by short-term investors.

Source: CryptoQuant
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Cryptocurrency Charts from TradingView.

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