Will Market Correction Push ETH Below $2000
A recent breakdown below the support trendline indicates the correction trend is likely to be prolonged. However, a healthy retracement in ETH price keeps the overall trend bullish. The intraday trading volume in Ether is $10.2 Billion, indicating a 45% gain.
Over the last two months, the Ethereum price recovery was encapsulated within a rising channel pattern, characterized by its movement between two parallel trendlines offering dynamic resistance and support. However, the recent sell-off in the crypto market has led to a breakdown below the lower trendline of this pattern, hinting at a likelihood of an upcoming correction. Should the daily candle close beneath this breached trendline, it would empower sellers, potentially driving prices even lower.
A post-breakdown decline could result in a further 10% decrease in price, potentially reaching a combined support level at $1920, which aligns with the 50% Fibonacci retracement level.
Nonetheless, a correction to this Fibonacci level could still be considered a healthy market adjustment, providing a solid base for a potential rebound. If the ETH price bounces back from this level, it would suggest that the current correction has recuperated the exhausted bullish momentum setting the stage for the next phase of recovery.
Ethereum- Global In/Out of the Money (GIOM)
The Global In/Out of the Money (GIOM) metric for Ethereum offers an optimistic perspective. Currently, 70.18% of Ethereum addresses are ‘in the money’ (profiting), while 24.9% are ‘out of the money’ (at a loss). This distribution suggests a relatively stable investor base, which could be less inclined towards panic selling, thereby potentially supporting a sustained bullish trend in the future.
- Exponential Moving Average (EMA): The ETH price decisive breakdown below the 20-day EMA after two months of trading above it indicates an uptick in selling pressure within the market.
- Relative Strength Index (RSI): The daily RSI, hovering around the 50% mark, reflects a neutral sentiment among traders.
Hot Take: Ethereum Price Correction Indicates Potential Further Decline
Ethereum has experienced a recent correction phase with a significant drop from $2400 to $2158. The breach below support trendlines suggests a risk of further correction. A potential decline to $1920, aligning with the 50% Fibonacci retracement level, is a possibility. However, such a correction could also provide a solid base for a rebound. The Global In/Out of the Money metric indicates that the majority of Ethereum addresses are in profit, which may support a sustained bullish trend. The breakdown below the 20-day EMA and the neutral sentiment reflected by the RSI suggest selling pressure within the market. Overall, Ethereum’s price correction indicates potential further decline but also the possibility of recovery.
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