Key Points
- Ethereum’s price experienced a 2% decrease in the past week, but a metric suggests it’s near its market bottom.
- Analysts predict a potential bullish rally for Ethereum, making it an advantageous time for investors to buy.
Ethereum [ETH] had a challenging week, its price fell by over 2%. This drop in price might present a golden opportunity for investors to accumulate more Ethereum while the price is still low.
Ethereum’s Current Position
Ethereum was trading at a key resistance level. A breakout above this level could potentially trigger a significant rally in the following weeks or months. According to data from CoinMarketCap, Ethereum’s value experienced a correction last week, dropping by more than 2%.
At the time of writing, Ethereum was trading at $3,687.02 with a market capitalization exceeding $442 billion. However, this bearish trend might soon reverse as Ethereum is testing a key resistance level.
Market Predictions
Crypto analyst Milkybull shared a tweet indicating this development. A breakout above the resistance could initiate a massive bull rally. As a result, this could be the final opportunity for investors to buy Ethereum under $3.7k in this cycle.
CryptoQuant’s data analysis showed that Ethereum’s net deposit on exchanges was low compared to the last seven days’ average, indicating high buying pressure. However, other datasets suggested otherwise.
For instance, Ethereum’s Coinbase Premium was red, signaling a dominant selling sentiment among U.S. investors. Despite this, data from Glassnode revealed that Ethereum’s price was near its market bottom, according to the Pi cycler top indicator.
This suggests that Ethereum has a high chance of gaining bullish momentum in the upcoming days. If this happens, Ethereum might soon reach $4.8k.
Further analysis of Ethereum’s 12-hour chart showed that the MACD was in favor of sellers as it displayed a bearish crossover. Its Relative Strength Index (RSI) also remained bearish as it was under its neutral mark, hinting at a continued price decline.
However, the Chaikin Money Flow (CMF) turned bullish by moving northwards towards the neutral mark in the last few days.
