Ethereums Monthly Chart Flashes DojiIndecision Before the Storm?
- Ethereum remains above $1,800 with a long-legged Doji signaling potential for a major shift.
- ETH dominance dropped to 7.48%, but analysts predict a rebound to 14%22% if Bitcoin cools.
- Crypto whales sold 262,000 ETH (~$445M), adding pressure and highlighting rising downside risk.
Ethereum has managed to stay above $1,800, despite repeated failures to punch through resistance levels. This holding pattern has led to a tightening of volatility, setting the stage for a larger move in either direction.
Ted Pillows, a popular analyst, pointed out a significant chart patterna long-legged Doji on Ethereums monthly chart. This candle, often a sign of market uncertainty, shows that neither buyers nor sellers have seized control, even after testing both the upside and downside extremes. Such patterns tend to appear near major turning points, especially after long stretches of selling or sideways movement.
ETH has stayed under the $2,000 mark since late March, and although it has rebounded from local lows, the broader picture remains dim. Ethereum remains more than 55% below its December peak, highlighting the ongoing weakness in altcoins. Analysts agree that breaking firmly above the $2,000$2,100 zone is key for confirming a meaningful recovery.
Ethereum Dominance Hits Yearly Low
Bitcoin Buddha, another analyst, noted that Ethereums dominance in the crypto market has fallen to a yearly low of 7.48%. Interestingly, he sees this sharp drop as a positive sign, suggesting Ethereum might be setting up for a sharp reversal.
According to him, when Bitcoins dominancecurrently at an all-time highstarts to fade, investors are likely to rotate capital back into Ethereum. He expects its market share to rise again, potentially reclaiming between 14% and 22% dominance, which would likely fuel a strong price rally.
Even so, the broader market remains cautious. Analyst Ali Martinez recently reported that crypto whales offloaded around 262,000 ETH, valued near $445 million, during the latest price bump. This significant selloff suggests that major investors are either hedging against potential volatility or preparing for a possible market pullback. Such moves could easily undermine short-term bullish hopes unless new demand steps in quickly.
Ethereums tight trading range has added to the tension. The coin hovers near the 100-hour simple moving average at around $1,821, facing selling pressure each time it nears $1,840. Recent price consolidation along that moving average paints a clear picture of indecision, as buyers and sellers continue to battle for control ahead of the next big push.
Key Levels Keep Market on Edge
Momentum indicators are also flashing warning signals. The RSI, currently at 41.96, shows signs of weakening buying power but hasnt yet tipped into oversold territory. Its steady position below the moving average hints at a cautious approach by traders, who are closely watching for either a sharp drop below support or a surprise upward bounce if new interest surfaces.
The MACD histogram reinforces the bearish sentiment, indicating a growing divergence between the MACD and its signal line, with both remaining below zero. Red bars continue to grow, signaling an increase in downside pressure.
Ethereum is still holding above $1,750, but if it loses that level, price could revisit the support zone between $1,500 and $1,600. A clean breakout above $2,000 could shift the trend, spark a stronger rally, and give bulls some breathing room. For now, the market is in wait-and-see mode, stuck between breakout hopes and downside risk.
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Read more: https://www.tronweekly.com/ethereum-monthly-chart-flashes-doji-candle/
Text source: TronWeekly
