Key Points
- Ethereum is expected to retrace to $3.7k, retest the support zone, then surge to $4k.
- The fair value gap below $3.7k could potentially break this support and pull the price lower.
Ethereum’s Potential Price Movement
Ethereum [ETH] is predicted to dip to $3.7k before retesting the support zone and potentially surging to a high of $4k.
This support zone could trigger a price increase towards the $4k mark.
However, the fair value gap below $3.7k might act as a price magnet, possibly breaking this support.
If bearish momentum pulls the price past the support zone, a retest at the upward trendline support is likely.
Market Data and Indicators
CoinMarketCap data shows a 2.24% decrease in price over the last 24 hours and a 2.16% increase over the last 7 days.
The overall Ethereum performance appears bullish as investors monitor the $3.7k support level.
Analysis of Santiment’s Social Volume chart shows periodic spikes in mid-May, correlating with significant price movements.
The retracement to 3.7k aligns with increased social activity indicating a potential price direction.
The IntotheBlock In/Out of the Money chart indicates that 61.87% of addresses valued at $11.06 million are in profit while 37.38% of addresses valued at $6.68M are at a loss.
It also indicates that 135k addresses are breaking even.
The key prices range from $3.3K to 3.6K in profits and $3.9 to $4k in losses.
This distribution indicates significant support and resistance levels based on holders’ profitability.
The Bollinger bands in the daily chart have widened, indicating a high volatile market that could apply slight bearish pressure to the support zone at around $3.7k and break out to surge to $4k.
The stochastic RSI (89.69) shows an overbought reading suggesting a short term retracement before continuation of the overall bull run.
