Ethereum (ETH) has gone up by nearly 3% in the past 24 hours as sellers took a pause yesterday and may be progressively buying back the token now that it has dropped below the $1,900 level again.
The past week was quite negative for the top altcoin as it experienced losses of 9.7% as the crypto sell-off resumed.
A graph shared by CryptoQuant provided insights into speculators’ sentiment.
It appears that Ethereum bears continue to dominate the price action as reflected by the behavior of funding rates – a measure of the financing fees that traders pay for keeping their positions open.
When the difference between the funding rates paid by traders is positive, it indicates that market sentiment is bullish as the volume of outstanding long positions exceeds that of shorts.
However, if market sentiment depresses, this difference will progressively shrink. CryptoQuant’s analysts measured the simple moving average of financing rates for the past 50 and 200 days and identified a “death cross”.
This means that the short-term average crossed below the long-term average. This reflects a trend reversal and confirms a bearish outlook.
Ethereum Bounces Off Key Support – Can It Recover?
Despite the latest recovery that Ethereum experienced during the second half of March, last week’s drop has now resumed the token’s downtrend.
For ETH to reverse this trend, it has to climb above the $2,100 level now.
One encouraging sign for bulls is that the token is bouncing off a key area of support ranging from $1,750 to $1,800.
If the RSI crosses above the signal, this would confirm a bullish near-term outlook as a double-bottom pattern would be in play.
A first target in that case would be set at $2,100, the nearest resistance for Ethereum, meaning an upside potential of 13%.
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The post Ethereum’s Bullish Breakout Blocked by Bearish Death Cross – Here’s the Fix appeared first on Cryptonews.
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