Ethereum Price Analysis: Will ETH Bounce Back After Testing $3,300 Support?
The recent correction in Ethereumโs price has caused panic among some investors, but smart money is taking advantage of the liquidity by scooping up assets. According to Coinglass data, $122 million worth of liquidations have occurred during this period.
RSI and Stability at $3,300 Support
Traders are currently debating whether to buy or short Ethereum at the $3,300 support level. The Relative Strength Index (RSI) is bouncing back to 42 after testing near oversold levels (30 and below), indicating a potential bullish outlook. However, solely relying on the RSI may not be sufficient to trigger immediate buy orders.
If Ethereum manages to close the day above $3,300, stability could gradually return to the market.
The Money Flow Index (MFI) and Buying Pressure
The Money Flow Index (MFI), which tracks the flow of money in and out of Ethereum, suggests that buyers are gaining strength. As more people bet on the dips, the MFI climbs towards the overbought region. This buying pressure could ignite a new uptrend with a target above $4,000.
EMA Indicators and Potential Correction
Indicators such as the 200-day Exponential Moving Average (EMA), the 50-day EMA, and the 20-day EMA indicate that the correction in Ethereum may not be over yet. To recover to $4,000, Ethereum needs to make aggressive moves; otherwise, further losses could lead to prices dropping to $3,000 in the short term and $2,500 in the medium term.
Resistance Levels and IOMAP Model
The IOMAP model by IntoTheBlock highlights the most robust resistance levels between $3,739 and $3,839. This range shows that more ETH coins are currently experiencing unrealized losses compared to those in profit. To flip bullish, Ethereum needs to break above this supply area.
Support Areas and Strategic Moves
Support areas have significantly decreased since the weekend, indicating the need for strategic moves by investors to avoid falling into traps. The strongest support lies in the range between $2,832 and $2,932, where 1.61 million addresses purchased 1.32 million ETH at an average price of $2,887. This region will be crucial if downward pressure overwhelms demand at $3,300 and $3,000.
Upside Potential and All-Time High
To strongly flip bullish, Ethereum must break above the thick supply area between $3,739 and $3,839. If Ethereum climbs above $4,000, FOMO (Fear Of Missing Out) may kick in and bring the all-time high of over $4,800 within reach.
Hot Take: Is it Time to Buy or Short Ethereum?
Ethereumโs recent correction has caused panic among some investors. However, smart money is taking advantage of the situation by scooping up assets. The RSI suggests a potential bullish outlook, but caution is advised as stability has not yet returned to the market.
The MFI indicates that buying pressure is increasing, which could lead to a new uptrend with a target above $4,000. However, indicators such as EMAs signal that the correction may not be over yet.
Investors should pay attention to resistance levels and support areas when making strategic moves. Breaking above the resistance levels could trigger a bullish trend, while strong support areas may prevent further sell-offs.
Ultimately, the decision to buy or short Ethereum depends on individual risk tolerance and market analysis. It is important to stay informed and make informed decisions based on the current market conditions.
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