The second largest cryptocurrency, Ethereum (ETH), has been trading in the bearish wave and continued to erode gains over the past few trading sessions.
Since late May 2024, sentiments in the crypto market appear bearish and a subsequent retracement has been noted. With no negative news and no rate cuts announced by the Federal Reserve, the market leaders (BTC and ETH) failed to gain momentum and continued to pare their gains.
In particular, the Pièce d’Ethereum (ETH) represented lower swings and broke the crucial $3,500 support mark this week. Meanwhile, sellers are expected to push the ETH price towards the $3,200 mark soon. Nonetheless, it has respected the trendline support region and still looks neutral.
A falling wedge pattern was observed, known for its bullish reversal, and Ethereum completed the 4th wave; it looks like the retracement is complete and there could be a rebound soon.
A breakout and close above $3,550 could trigger a strong rebound and would soon pull ETH price towards the $3,800 mark.
At the time of going to press, the Prix Ethereum traded at $3,371 with an intraday rise of 1.36%, reflecting neutrality on the charts. It has a monthly rate of return of -9.20% and 77.20% annually, reflecting short-term consolidation.
Analysts guide their bullish view and suggest that the ETH Price could reflect a rebound and approach the $3,800 mark soon.
Is Ethereum (ETH) Ready for a Reversal?
The Ethereum (ETH) Price made its retracement, retested the 100-day EMA, and respected the trendline of the falling wedge pattern. Notably, the chart structure is still positive and a single bounce above the $3,550 mark would trap the bearish cartel.
Source : TradingView
Its Momentum oscillator, RSI curve remains in the negative region and draws a negative crossover. Likewise, the MACD indicator plots the red bars and directs a bearish outlook.
Moreover, the price action highlights a retracement and the coin has regressed to its 38.2% Fib zone. Interestingly, the $3,300 mark is the strong support zone.
Notably, the trading volume remained stable and climbed over 6.57% to $16.03 billion. The total supply of ETH is 122.37 million and has a fully diluted market capitalization of $413.93 billion.
An article by @DaanCrypto on the X platform highlighted that the price of ETH is still in the consolidation phase and is on an upward trajectory.
Source : X
Active addresses and trading volume outlook
Active addresses of Ethereum (ETH) fell more than 32% to 505,000 and saw a decline in investor interest.
Source : Santiment
Similarly, transaction count data revealed a notable drop of over 21% and was increased to 845,000, implying reduced transaction activity this week.
Futures Open Interest Data Reveals Mixed Clues
Futures OI data revealed that buyers have started accumulating and are looking for a significant pullback to hold the $3,500 mark soon.
Source : CoinGlass
Open interest data highlights a rise of over 1.28% to $15.03 billion over the past 24 hours, revealing the addition of long positions.
Immediate levels of support for Jeton ETH are $3,300 and $3,200, while the main obstacle to the upside is around $3,440, followed by $3,650.
What’s Next for Ethereum: $3,200 or $3,500 This Week?
Amid the significant profits recorded from the top, ETH price staged a massive sell-off and retested the $3,300 mark this week. Meanwhile, the bulls have started accumulating and are looking for an upcoming rebound.
If the bulls manage to hold the $3,300 mark, the buyers will likely gain strength and hold the $3,500 mark soon.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment or other advice. The author or anyone mentioned in this article is not responsible for any financial loss that may occur while investing or trading. Please do your research before making a financial decision.
