Key Points
- Ethereum’s short-term outlook suggests a bullish reversal around the $3,000 mark.
- Despite selling pressure, most Ethereum holders remain profitable.
Ethereum [ETH] experienced a 20% dip following a recent altcoin correction, after failing to break the $4,000 resistance level.
However, this decline may not be substantial as Ethereum’s technical patterns and on-chain metrics indicate possible price recovery or increased volatility.
ETH Nears Key Support at $2.8k
Ethereum’s weekly chart displays consolidation in a bullish flag pattern, often a precursor to a breakout. The recent drop has brought Ethereum near the lower boundary of this ascending flag at $2,800.
If Ethereum can maintain this level, it could trigger a significant upward rally, potentially pushing Ethereum towards its next key target of $6,000. However, failure to sustain this support could expose Ethereum to further losses.
Potential Short-term Reversal at $3,000
The daily chart indicates a potential short-term bullish reversal at the $3,000 mark. Trading activity for Ethereum has seen a slight increase over the past 24 hours, supported by CryptoQuant data showing a sharp increase in active addresses during the same period.
Increased network activity often signals renewed interest, which could stabilize prices or trigger an upward move.
Despite relatively bullish short-term signals, long-term on-chain metrics paint a different picture. According to CryptoQuant, Ethereum’s exchange outflows have increased over the past 24 hours, suggesting increased selling pressure as investors take profits around the $3K mark.
These outflow cycles typically alternate between peaks and dips, and the current upswing could indicate an accumulation of sell-side activity.
Despite short-term corrections, the majority of Ethereum holders remain profitable. Data from IntoTheBlock reveals that 76% of all addresses holding Ethereum are profitable at current price levels. This reflects the confidence among long-term investors and suggests a strong foundation for Ethereum’s potential ongoing rally.
Ethereum’s short- and long-term price action depends on several key levels. The $2.8K flag support level could trigger a significant rally if it holds, while increased network activity around the $3K mark supports a bullish outlook.
With most holders still in profit, Ethereum’s long-term trajectory remains optimistic.
