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All through the weekend, we have seen the Ethereum price slowly creeping back higher to the $2,743 key resistance on the 1-hour timeframe. This resistance is the price level the bulls must break through if we are to see any further move up come next week.
However, this bullish move is being done on a failing volume. As we can clearly see that the Ethereum bullish volume has been declining all through this ETH price rally on the 1-hour timeframe.
In this Ethereum analysis, we will be talking about what this means for the ETH price and the key levels to keep an eye out for in the coming days.
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Ethereum failing Volume What Does It Mean?
The volume indicator is very important for us traders because it helps us gauge the short-term market sentiment for Ethereum. By understanding the role of the volume indicator, we can decipher just how many traders are interested in buying this current rally in the ETH price.
And right now that number is pretty low. The reason for this is because of the massive key level and selling pressure just overhead at the $2,743 price level.
We tested this key level last week and failed, and right now, a lot of traders believe Ethereum might head a bit lower to gather more strengths and find its bottom before trying to break through that $2,743 level again.
How To Know When The ETH Sell-Off Starts
Throughout this bullish rally, the Ethereum price has held a key support level on the 1-hour timeframe. This ascending support might just be the perfect indicator to spot exactly when the ETH trend reverses back to the downside.
What we are waiting for is a break and retest of this key ascending support to signify that the weekend bullish rally is over and Ethereum might be ready to start heading back down.
Final Verdict!
The Ethereum price might be rallying higher right now, but it is doing so on declining volume. This low volume is a great indication that shows the growing bearish sentiment for the ETH price in the short term.
Not only that, Ethereum is about to run into a very key level on the 1-hour timeframe, increasing the likelihood for us to see a halt to the move higher and a price crash in the coming days.
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