Ethereum Price Correction: Whales and Technicals Point to a Potential Rebound
The recent market sell-off has led to a notable correction in the price of Ethereum. From its high of $4091, the price has fallen by 25% to reach $3060. This downward movement has brought the price to the 38.2% Fibonacci retracement level, which is considered a crucial support level for a potential rebound. However, with Bitcoin facing additional supply pressure from outflows in spot ETFs, altcoins like Ethereum are at risk of further decline.
Ethereum Defies SEC Scrutiny as Whales and Technicals Suggest Rebound
Despite facing scrutiny from the SEC and a broader market correction, Ethereum is showing signs of resilience. Data from Santiment reveals an increase in whale activity, with the highest recorded levels this year indicating significant market interest.
The RSI indicator has dropped to 28.5, its lowest point since a similar market bottom in late January. This suggests that Ethereum is oversold and may be due for a turnaround. Additionally, there has been a 7% decrease in the 30-day average trader returns, further indicating a potential recovery for Ethereum.
💼📉 #Ethereum’s community has been uniting with #Solana’s to combat against the #SEC security allegations. Meanwhile, the price of $ETH has retraced -18% since its top on March 11th.
Whale activity has been at the highest level of 2024 as the asset polarizes traders over the… pic.twitter.com/T1kHPufLtb
— Santiment (@santimentfeed) March 22, 2024
The current price of Ethereum is $3402, with a daily gain of 2.14%. It is teasing a breakout from the overhead trendline, which represents dynamic resistance. If the breakout occurs, it would confirm a potential recovery for Ethereum.
A post-breakout rally could push the price back to $3780 and eventually $4090.
Will Ethereum Price See Deeper Correction?
The recent outflow of $888 million from 10 Spot BTC ETFs has contributed to the ongoing market correction. If this bearish momentum continues in the coming week, it could lead to a break in the combined support of the 38.2% Fibonacci retracement level and $3120. Losing this support would increase supply pressure and potentially drive the price down to the $2800-$2700 support range.
Technical Indicator
- Exponential Moving Average: The coin’s price remains above the 50-day and 100-day EMA, indicating a bullish trend.
- Moving Average Convergence Divergence: The bearish crossover between the blue line and orange signal line suggests an aggressive correction is underway.
- Whale activity is at its highest level this year, indicating strong market interest in Ethereum.
- The RSI indicator is at its lowest point since January, suggesting an oversold condition and potential for a turnaround.
- The recent outflow from Spot BTC ETFs has contributed to the market correction, but if this bearish momentum continues, Ethereum’s price may see a deeper correction.
- Technical indicators such as the EMA and MACD also provide insights into the current market conditions.
Hot Take: Ethereum’s Road to Recovery
Ethereum’s recent correction has been significant, with a 25% drop in price. However, there are several factors suggesting that a rebound may be on the horizon:
Overall, while there are risks and challenges ahead for Ethereum, there is also potential for a recovery in the near future. Keep an eye on market trends and indicators to make informed decisions about your investments.
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