Ethereum (ETH) Price Fails to Break Above $4,000, Double-Top Pattern Forms

Ethereum's price has failed to make its way toward a new record high and is currently experiencing bearish price action, leaving market participants worried that the bull run might be over.

Ethereum’s price has failed to make its way toward a new record high and is currently experiencing bearish price action, leaving market participants worried that the bull run might be over.

The asset now remains below $3,500, which has turned into a key resistance line.

Technical Analysis

The Daily Chart

On the daily chart, the price has entered a bullish phase since the beginning of November after rebounding from the $2,300 support level. However, the $4,000 resistance zone has rejected the market to the downside, with the $3,500 level also being lost.

The 4-Hour Chart

Looking at the 4-hour timeframe, it is evident that the market has failed to break above the $4,000 resistance level twice, forming a clear double-top pattern.

Sentiment Analysis

Ethereum Taker Buy Sell Ratio

While Ethereum’s price has been struggling to continue its rally and create a new all-time high, analyzing the futures market sentiment could yield helpful insights about the potential reasons behind this correction and whether it will be over soon or not.

This chart presents the Taker Buy Sell Ratio metric, which measures whether the buyers or the sellers are executing their positions more aggressively on aggregate, using market orders.