Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is currently walking a tightrope as the recent price move failed to instill bullish confidence among investors. In recent weeks, ETH prices have fluctuated, with highs that looked promising but inevitably led to disappointing lows. Attempts by the bulls to break through the resistance have so far been unsuccessful. The question that is now at the forefront of every crypto investor’s mind is: Will the Ethereum price decline further?
The current landscape of Ethereum
As of mid-May 2023, Ethereum is struggling to keep its footing. The bears are applying considerable pressure, and despite the best efforts of the bulls, the Ethereum price has been on a downward trajectory.
Recent on-chain data reveals a crossover in the Ethereum taker buy/sell ratio, a signal that has traditionally signaled a spike in the asset’s price.
A notable intersection has been observed at the 280-day and 476-day moving averages (MA) of the Ethereum Taker buy/sell ratio.
This data, highlighted by a CryptoQuant analyst, shows a similar pattern to the one formed in May 2021, which coincided with the peak of Ethereum’s bullish rally. The critical metric in focus here is the “Ethereum buy/sell ratio”. For this reason, such a pattern may be bearish for the ETH price, since it previously started a decline.
Will the ETH price not recover?
Lido Finance, an Ethereum-based liquid staking platform, currently maintains a buffer of 452,710 Ether for withdrawals. Notably, bankrupt crypto lending company Celsius has claimed 94.5% of this amount. The consequences of this ETH withdrawal are still unclear, but a potential increase in selling pressure on this altcoin is anticipated.
Looking at the 4-hour price chart, ETH price has taken a sharp fall today after facing resistance near $1,838. The price quickly fell below the 38.6% Fibonacci level and is currently trading at $1,797, down more than 2% in the last 24 hours.
The RSI level has dropped significantly below its midline, suggesting that buyers are losing control. If the bulls fail to defend the $1760 level, another downtrend for the ETH price may start. However, a pullback can occur if there is significant bullish sentiment with a break above $1,840, which can push ETH price above $1,900.
