Ethereum Faces Resistance: Analysts Split on Next Major Move
Ethereum (ETH) has experienced a moderate pullback over the past week, shedding approximately 5% after a period of notable gains. Currently trading near $3,633, ETH has seen fluctuations between the $3,500 and $3,700 range, prompting a divide among analysts regarding its immediate future. This recent price action aligns with broader market cooling and profit-taking following Ethereum's earlier upward trend.
Short-Term Pressures and Market Hesitation
On-chain and derivatives market data indicate that Ethereum may be entering a consolidation phase. CryptoQuant analyst Darkfost highlighted increased selling pressure and short-term weakness in the ETH futures market. Crucially, Ethereum's taker buy/sell ratio on Binance has fallen to 0.87, one of its lowest levels this year, signifying that sell orders are currently dominating buy orders. This trend, which began around July 18, has consistently limited upward momentum. Additionally, both the seven-day and 30-day Simple Moving Averages (SMAs) have started to trend downward, further suggesting a deceleration in market momentum. Despite multiple attempts, Ethereum has yet to decisively break through the $4,000 resistance level, pointing to prevailing market hesitancy.
Mixed Views on Ethereum's Long-Term Trajectory
While short-term indicators suggest a challenging period for Ethereum, some analysts maintain a robust positive long-term outlook. Titan of Crypto, a respected market commentator, recently projected a potential price target of $8,000 for ETH, envisioning a significant rally that could push it above its previous all-time highs. This optimistic forecast is predicated on the formation of a large monthly triangle pattern, which, if it triggers an eventual breakout, could pave the way for a substantial upward movement beyond $10,000. However, this long-term bullish sentiment is tempered by the current lack of strong buying activity in the futures market and persistent selling pressure, which continue to cap immediate gains for the cryptocurrency.
