Ethereum Struggles to Gain Momentum, $1,500 Resistance in Focus
Ethereum has managed to stay above the $1,200 level despite increasing selling pressure, showing signs that the downward trend is weakening following the Merge. However, this does not imply that bullish momentum is yet in play.
Technical Analysis: Key Support and Resistance Levels
The daily chart indicates that Ethereum has been supported by the ascending line, with increased investor confidence preventing a close below it. Despite this, the price action remains trapped in a sideways trend, continuing for a second consecutive week. A crucial resistance lies at $1,500, resulting from the intersection of the descending line and the 100-day moving average. If Ethereum can clear this resistance, the next target would be $2,000. However, as long as the price trades below $1,500, a retest of the support level is possible, with a close below this area likely pushing Ethereum to test $1,000.
Technical Indicators: Bearish Sentiment Persists
Ethereum’s daily moving averages show that the 20-day MA ($1,333) remains below the 50-day MA ($1,497), signaling a lack of upward momentum. The 100-day MA ($1,494) and 200-day MA ($1,921) further confirm that the path to a bullish trend remains blocked, with the price action struggling to break through key resistance levels.
ETH/BTC Chart: Bearish Momentum Extends
Against Bitcoin, Ethereum faces increased bearish pressure, having corrected 18% since the Merge. The price is now approaching a solid support zone at 0.065 BTC, with the possibility of further decline if the bearish trend continues. For any bullish reversal to take place, Ethereum would first need to begin forming higher highs and higher lows.
Sentiment Analysis: Market Uncertainty Holds Back Momentum
Market sentiment remains uncertain, particularly in the derivatives market. CryptoQuant data reveals that funding rates are not aligned with any clear trend, as the market remains divided between long and short positions. Until market sentiment becomes more decisive, the sideways trend in Ethereum’s price is likely to persist.
