On the price charts, there was no respite yet from the bearish momentum. The sellers were utterly dominant, although bulls have seen some small joy over the weekend. This was unlikely to reverse the downtrend.The sharp drop on 3 March left a large imbalance on the 4-hour chart, highlighted in white. Similarly, another fair value gap was presented last week when Ethereum dived from $1527 to $1437, and both imbalances were highlighted in white.
The first one did not see a meaningful fill, but the latter gap is close to seeing 50% filled, which would be at $1482. Moreover, the $1475-$1480 area has acted as resistance over the 24 hours preceding press time. The RSI appeared to retest the neutral 50 as resistance at the same time the price neared a lower timeframe resistance band. Yet, this could easily result in Ethereum moving higher to $1500, as weekends tend to see volatility without trading volume. Meanwhile, the OBV saw a resurgence to highlight some buying pressure.The market structure remained bearish on both the 4-hour and the daily chart, and ETH is likely to sink toward new lows. $1420 could provide some lower timeframe support.
Even though this bounce measured gains of 6.5%, the Open Interest was in decline. This showed strong bearish sentiment remained in the market and was not swayed by the meager bounce.Subscribe to get it daily in your inbox.