Guiding You Through Ethereum’s Price Correction and Potential Upside Movement 📈
So, you’ve been closely following Ethereum’s price movements and have noticed a correction phase after the recent rejection from the $4,000 resistance level. But don’t lose hope just yet! There might be some positive changes on the horizon. Let’s delve into the technical and on-chain analysis to understand what could be in store for Ethereum’s price in the short term.
Technical Analysis Overview 📊
The Daily Chart 📈
- ETH has been on a consistent rally in recent months before facing a solid rejection at the $4,000 mark.
- The current correction phase has Ethereum consolidating below the $3,600 level.
- If ETH manages to break above $3,600 again, we might witness a bullish continuation, potentially leading to a new all-time high in the coming weeks.
The 4-Hour Chart 🕒
- On the 4-hour timeframe, the consolidation phase post-rejection becomes clearer.
- An inverse head and shoulders pattern has been forming since the bounce from the $3,000 support zone.
- The Relative Strength Index (RSI) breaking above the 50% threshold indicates a shift towards a bullish momentum.
- It’s likely that ETH will break above the neckline of the head and shoulders pattern soon, potentially heading towards the $4,000 mark in the short term.
Insights from On-Chain Analysis 📊
Ethereum Exchange Reserve 📦
- Following a surge in price, Ethereum’s dip below $4,000 triggered panic selling among some holders.
- Analyzing the exchange reserve metric, which measures the Ethereum stored in exchange wallets, provides key insights.
- An increase in the exchange reserve suggests a higher supply available for sale, which could lead to a price drop.
- The data shows that the exchange reserve has exceeded its 30-day moving average, indicating more holders transferring Ethereum to exchanges for potential selling.
- If this trend continues, with more Ethereum up for sale, it might result in further price decreases for Ethereum in the upcoming weeks.
Hot Take: Holding on Tight for Ethereum’s Potential Upside Movement 🚀
As you navigate through Ethereum’s price correction phase and the potential for an upward swing, staying informed and keeping an eye on key indicators will be crucial. While the current market situation might seem uncertain, there is always the possibility for a positive turn. So, buckle up and stay tuned for Ethereum’s next moves in the crypto space!
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