Ethereum (ETH) is facing bearish pressures according to recent technical and on-chain indicators, with the cryptocurrency's price dropping below the significant $1,650 support level. This comes as investors prepare for potential turbulence in the market, following predictions by a prominent crypto analyst suggesting uncertainty in Ethereum's future trajectory.
On Thursday, Ethereum's daily and 4-hour charts showed bearish signals, with the cryptocurrency making lower highs and lows. The daily chart revealed a bearish crossover between the 50-day and 200-day moving averages, usually an indicator of a long-term downtrend. The 4-hour chart showed that after weeks of testing, Ethereum's price broke through the $1,650 support zone.
The on-chain taker buy-sell ratio has also been trending in the negative region over the past few months, indicating bearish sentiment in the futures market. As long as this continues, a bullish reversal in the short term seems unlikely.
These developments align with concerns raised by Nicholas Merten, a well-regarded crypto analyst who recently predicted that Ethereum has less than a year to break free from an ascending triangle pattern. This pattern typically indicates an impending breakout and forms when the price of an asset reaches higher lows while facing resistance at a horizontal level. Ethereum's inability to convincingly break the resistance at around $2,000 is a cause for concern.
Adding to the uncertainty around Ethereum is a recent report showing approximately 640,000 ETH exiting exchanges. While this could be interpreted as investors hoarding Ethereum for the long term in anticipation of a future price surge, it also raises questions given Ethereum's persistent bearish trends. As of Thursday, Ethereum was trading at $1,619.
Despite these bearish indicators and uncertainties, some traders might see this as an opportunity to accumulate Ethereum at a lower price. However, the risk of further downside remains, as underscored by the bearish technical and on-chain indicators.
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