Is $2.7K ETH Target Next After Gaining 6% Daily?

On a larger scale, Ethereum’s price has been declining, nearly erasing all of its gains since early 2024.

However, things could be about to change soon, which was hinted at by the developments of the last 24 hours.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the asset has been consolidating in a wide range between the $2,100 and $2,700 levels as the decline appears to have stalled. However, the market structure remains bearish as the price should at least recover the $2,700 level to make a higher high.

Meanwhile, looking at the recent range, the recent moves seem to indicate the formation of a price minimum. So, while it is too early to predict, a new uptrend seems likely in the coming months. That is, of course, if the $2,100 support level remains intact.

The 4 hour chart

The 4-hour chart presents a clearer demonstration of the recent price action. As you can see, the market immediately bounced off the $2,100 support zone and has been gradually moving higher ever since.

Although momentum is still weak, it could only be a matter of time before an impulsive move towards the $2,700 resistance level occurs as the 4-hour bullish candles have strengthened recently.

sentiment analysis

By Edris Derakhshi (TradingRage)

Ethereum Exchange Reserve

While the price of Ethereum appears to be making a bottom based on technical analysis, a worrying signal is emerging from the on-chain analysis. This chart presents Ethereum’s exchange reserve, the total amount of ETH held on exchanges. The metric is an indicator of supply as these coins can be sold at any time and increase selling pressure.

As the chart shows, the overall trend in the foreign exchange reserve metric has been down as investors appear to have been hoarding as a whole since last year. However, short-term fluctuations also matter, as every time the exchange reserve has risen above its 30-day moving average recently, it has been followed by a drop in prices.

The same behavior is occurring as the exchange reserve has recently risen and is already above its 30-day moving average. Therefore, a further price drop is still possible in the short term if there is not enough demand to meet the supply.

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