The Ethereum (ETH) price has recently shown an increase in demand, particularly around the $2200 level. This is indicated by long-tail rejection candles on its daily chart, suggesting a decrease in bearish momentum. The Bitcoin price stabilization above $40000 and the overall uptick in altcoin markets have also contributed to a relief rally.
Over the past three days, the Ethereum price has risen by nearly 4% and is now trading around $2280. With this renewed buying pressure, there is potential for Ethereum to surpass the $2500 threshold once again.
Bear Trap Reboots Recovery Sentiment in ETH
- The Ethereum Fear and Greed Index at 48% reflects a neutral sentiment among traders.
- The $2200 support, backed by several technical levels, creates a strong support region.
- The intraday trading volume in Ether is $6.3 Billion, indicating a 10.3% gain.
During the recent correction, the Ethereum price dropped from $2714 to a low of $2168, representing a 20% decrease. However, the coin price found resilience around the $2200 mark and reclaimed the previously breached support trendline. This reversal marked the prior downfall as a ‘Bear Trap’ and triggered additional buying orders in the market.
If Ethereum can maintain its position above this reclaimed support at $2280, it could initiate a 6.85% relief rally, aiming for the $2430 level. This resistance aligns with the 50% Fibonacci retracement level of the recent correction.
To continue its upward trajectory and potentially retest the $2700 mark, Ethereum needs to break above this critical resistance level.
Has Ethereum Price Entered Downtrend Momentum?
Examining Ethereum’s daily chart, it is clear that corrections are common. In November 2023, there was a 38.2% correction, followed by a 23.6% retracement in December 2023. These retracements, particularly around the 38.2% Fibonacci level, are typical for Ether and often precede upward movements.
- Exponential Moving Average (EMA): The 100-day EMA slope at $2200 has served as valid pullback support.
- Relative Strength Index (RSI): The daily RSI slope below 45% indicates bearish market sentiment.
Hot Take: Ethereum’s Potential for a Relief Rally
Ethereum has shown signs of recovery and regained support at $2200 after a significant correction. With renewed buying pressure and the broader market stabilization, there is potential for a relief rally towards the $2430 level. However, breaking above this resistance will be crucial for Ethereum to gain further momentum and potentially retest the $2700 mark. Traders should closely monitor price movements and key levels to assess whether Ethereum can leverage its current momentum effectively.
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