According to CryptoPotato, Ethereum's price has been on a downward trend, causing investors to question if the bull market has ended. However, a key support level could potentially set the stage for a recovery. The daily chart shows the price trending lower within a large descending channel pattern. Over the past few days, the market has been unable to reclaim the $3,500 level, leading to a further drop after a bearish rejection.
Currently, a decline towards the $3,000 support level is expected. This level coincides with both the lower boundary of the channel and the 200-day moving average. While this confluence of support elements makes $3,000 a strong support zone, a breakdown could lead to a rapid worsening of the situation.
The 4-hour chart provides a clear picture of the price's rejection from the $3,500 resistance level. The $3,350 short-term support zone is also being broken to the downside, making $3,000 a likely upcoming target for Ethereum. However, investors should monitor the RSI, as it has entered the oversold region, indicating a potential recovery soon.
Analyzing the futures market metrics for Ethereum can complement price analysis. The Taker Buy Sell Ratio, one of the most useful futures market metrics, measures whether buyers or sellers are more aggressive in executing their orders on aggregate. Following the rejection from the $4,000 level, a large volume of market sell orders has been executed in the futures market. This has brought the Taker Buy Sell Ratio to its lowest value in recent months, suggesting that futures market traders anticipate the price will drop even further in the short term.