Is Another Correction Imminent for ETH or Will $3K be Attained by Ethereum Price? 😉

Discover if Ethereum has Bottomed Out Yet

If you have been closely monitoring Ethereum’s price, you might be wondering if the recent decline will soon come to an end. With the rejection from the $3,500 resistance level, Ethereum has been on a downward trend. However, there are indications that the price might be reaching a bottom.

Technical Analysis Predictions 📊

Insights from the Daily Chart

When analyzing the daily timeframe, it is evident that the price has been steadily decreasing after breaking below the 200-day moving average, which was situated at around the $3,200 mark. The $3,000 and $2,700 levels have been breached, and the price even tested the $2,200 support zone.

Despite the bearish trend, recent price action has been surprisingly bullish. This has led to speculation about the possibility of a V-shaped recovery. Currently, the $2,700 resistance level is acting as a barrier, causing the price to consolidate in the short term before any significant movements occur.

Observations from the 4-Hour Chart

Examining the 4-hour timeframe reveals that the price has bounced back from the $2,200 region and is now testing the $2,700 resistance level. Additionally, the RSI has recovered above the 50% threshold, indicating a bullish momentum in this timeframe.

If the price successfully breaks through the $2,700 level, there is potential for a rally towards the $3,000 resistance zone. In such a scenario, a full recovery could be on the horizon for Ethereum.

Insights from On-Chain Analysis 🔍

Exploring Ethereum Exchange Reserves

Following the significant drop in Ethereum’s price, many investors have sold their coins at a loss. However, some participants believe that ETH is currently undervalued, leading to a potential accumulation phase.

Analyze the Ethereum exchange reserve metric, which tracks the amount of ETH held in exchange wallets. An increase in this metric indicates investors depositing their coins to exchanges for selling, while a decrease suggests an accumulation phase.

Currently, the exchange reserve metric has shown a gradual increase after the recent drop, indicating investor capitulation. Yet, with signs of market recovery, the exchange reserve is declining below its 30-day moving average. This signals a rise in demand, hinting at a possible Ethereum price recovery in the near future.

Hot Take 💡

After reviewing the technical and on-chain analysis, it appears that Ethereum might be on the verge of finding a bottom. Recent price action and indicators suggest that a recovery could be on the horizon. Stay informed and monitor the market closely to make well-informed decisions regarding your Ethereum holdings.

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