Ethereum’s price has reached a critical support zone, rebounding from the 61.8% Fibonacci retracement level, potentially entering a consolidation phase
- Ethereum’s price faces a crucial support zone, lying between the 50% and 61.8% Fibonacci retracement levels.
- Despite weeks of bearish trends, Ethereum rebounded from this key zone, signaling a potential consolidation phase.
- Ethereum futures market metrics suggest a potential shift in market sentiment from bearish to bullish.
After facing weeks of rejection and bearish developments, the price of Ethereum has reached a critical point near a pivotal support area. This support zone includes the 61.8% Fibonacci retracement level, and Ethereum’s price has rebounded from this crucial zone, providing hope amid the prevailing bearish sentiment. The rebound also suggests the possibility of a temporary consolidation phase.
The Ethereum options data indicates a strong surge in the put positions. If ETH price fails to sustain $1,631 levels, it can drop another 100 points. pic.twitter.com/ugdBnQDLDa
— Hirdesh Kumar Bhaskar ₿ (@MotionCurry) September 15, 2023
Key Support Levels for Ethereum
Ethereum’s price has been on a prolonged downtrend, breaking multiple support levels, including the crucial 100 and 200-day moving averages. However, it has encountered a critical support zone between the 50% and 61.8% Fibonacci retracement levels. Market participants see this range as the final defense for Ethereum bulls, and if the price drops below this threshold, it could increase the likelihood of a significant downward plunge.
Pullback Potential for Ethereum
Despite the bearish indicators, there is hope that the price could find support and enter a consolidation phase around the 200-day and 100-day moving averages. On the 4-hour timeframe, Ethereum’s price underwent a consolidation phase between the $1.6K-$1.8K price range. A bearish flag pattern formed during this period, and the price broke below the lower trendline of the flag, triggering a significant downward movement.
However, as Ethereum approached the critical support level at $1.5K, buying pressure intensified, leading to a rebound. This resulted in a retracement towards the lower threshold of the broken flag, potentially forming a pullback. If this pullback occurs successfully, it could indicate the start of another downward phase, aiming to break below the $1.5K mark. On the other hand, if the price fails to complete the pullback and breaks above the trendline, market participants may anticipate a surge toward the $1.7K resistance level.
Ethereum Futures Market Shows Potential Shift in Sentiment
Ethereum’s price has been on a downtrend, repeatedly facing rejection around the $2,000 resistance level. The Taker Buy Sell Ratio metric, complemented by a 30-day simple moving average, reflects the bearish sentiment in the ETH futures market. However, there has been a notable surge in this metric, bringing it closer to the neutral 0 line. This sudden increase suggests a potential change in sentiment among market participants, indicating a shift towards a more bullish stance.
If this metric continues to rise and enters positive territory, it could signal the beginning of a new phase characterized by bullish price action. In such a scenario, Ethereum’s price may experience an upsurge, potentially targeting higher resistance levels.