Ethereum Consolidation Deepens as Taker Buy/Sell Ratio Reaches 0.87

Ethereum (ETH) is experiencing increased volatility, correcting from a local high of $3,940 to $3,360. Analysts warn of potential deeper corrections if ETH does not reclaim key support levels.

Key market indicators show:

The taker buy/sell ratio has dropped to 0.87, indicating that sellers dominate the market.
This shift in dynamics suggests sustained selling pressure on ETH's price.
Since July 18th, the ratio has remained mostly negative, correlating with difficulty in breaking resistance levels.

Despite current bearish sentiment, some analysts believe this consolidation may set a foundation for future gains if ETH stabilizes above critical support zones. Long-term fundamentals indicate potential upside once selling pressure subsides.

Current Price Analysis

ETH is trading at $3,654.60, facing resistance near the 50-period SMA at $3,668.28 and below a key horizontal resistance at $3,860.80. A recovery bounce was rejected at this level, leading to a return to the $3,600-$3,650 range.

Key points in price analysis include:

The 100-period SMA at $3,695.32 acts as dynamic resistance.
The 200-period SMA at $3,303.42 serves as long-term support.
A breakout above $3,860.80 is necessary for bullish momentum.
Failure to hold above $3,600 could lead to retests around $3,300-$3,350.

Overall, Ethereum remains in a consolidation phase, with the next steps critical for its price direction.