Can ETH rise to $2.7k after finding support at this critical level?

The price of Ethereum has been trending down for the past few months, but has found support at a critical level.

Meanwhile, the market has yet to show a bullish turn.

Technical Analysis

By Edris Derakhshi

The daily chart

In the daily period, the asset has recently been rejected from the $2,700 resistance level and has gradually declined towards the $2,200 support zone.

Although this area has once again held price, the market has yet to show a significant rally. As the RSI also remains below 50%, momentum still favors a bearish continuation. Therefore, a break below the $2,200 level remains likely.

The 4 hour chart

Looking at the 4-hour chart, it is clear that the market has gradually moved higher, making higher highs and lows from the $2,200 support level.

However, bullish momentum is still lacking and the market would need to break at least the $2,700 level before a long-term bullish reversal could be expected. Consequently, it remains to be seen whether the recent consolidation is a phase of accumulation or distribution.

sentiment analysis

By Edris Derakhshi

Ethereum Exchange Reserve

Although the price of Ethereum has already corrected significantly, market participants are not convinced that a bullish reversal will happen anytime soon. However, analyzing the dynamics of market supply and demand can yield beneficial results.

This chart presents the exchange reserve metric (along with its 30-day moving average), which measures the amount of ETH held in exchange wallets. These coins are considered as supply as they can be sold quickly and generate selling pressure.

As the chart suggests, Ethereum’s exchange reserve metric has been steadily declining over the past few months. However, it is currently rising above its 30-day moving average, indicating a potential increase in selling pressure and could lead to another short-term decline if it is not met with sufficient demand.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for details.

TradingView Cryptocurrency Charts.