Key Points
- Ethereum’s recent price dip has directed it towards a crucial support level.
- Despite the dip, there are indications of a potential bullish trend reversal for Ethereum.
Ethereum, like many other cryptocurrencies, has experienced price corrections over the past day.
The recent dip in Ethereum’s price has brought it towards a significant support level on the charts.
Ethereum’s Current Support Level
In the past 24 hours, Ethereum has lost over 5% of its value and is currently trading just above $2.5k.
Crypto analyst Ali has pointed out that Ethereum has successfully held its support at $2.4k in the past.
However, the recent price decrease might push Ethereum towards that level again.
It’s worth noting that Ethereum has been following an upward channel pattern since 2021, testing the pattern multiple times.
If this pattern continues, it’s feasible that Ethereum could reach $3k in the near future.
Furthermore, if conditions are favorable, Ethereum could potentially reach $4k in the coming months.
Predictions for Ethereum’s Price
On-chain data analysis of Ethereum suggests that the cryptocurrency could start moving towards $3k soon.
According to data from Glassnode, Ethereum’s price has slipped below its possible market bottom of $2.58k.
The Pi Cycle Top indicator suggests that Ethereum’s potential market top could be at $5.7k, making a $3k target not overly ambitious for investors.
Analysis of data from CryptoQuant reveals several bullish metrics for Ethereum.
For example, Ethereum’s exchange reserve has dropped, indicating high buying pressure, which often results in price increases.
On the derivatives market, things look positive.
Ethereum’s funding rate suggests that traders holding long positions are dominant and willing to pay short traders.
Additionally, Ethereum’s taker buy/sell ratio has turned green, indicating dominant buying sentiment among derivatives investors.
Data from CFGI.io suggests that Ethereum’s fear and greed index is in a “fear” position, often indicating a high chance of a bullish trend reversal.
However, if the bearish trend continues, Ethereum could test its $2.4k support level.
Failure to maintain this support level could push Ethereum’s price down to $2.3k in the coming days.
