Is the worst over for ETH after 37% drop?

After a steep 37% drop, Ethereum found significant buying activity near the $2.1K support region, leading to a bullish rally.

However, current price action suggests that ETH may be completing a pullback towards the lower boundary of the $2.8K wedge, which could indicate a continuation of the bearish trend.

By Shayan

The daily chart

A closer look at Ethereum’s daily chart reveals a strong bullish response near the critical support level of $2.1K, leading to a rapid rally. This move indicates robust demand around $2,000, with investors showing interest at lower prices, reflecting their confidence in its long-term potential.

However, ETH now finds a substantial resistance level, which includes the previously broken lower boundary of the wedge and the key threshold of $2.8 thousand.

This area could stop the bullish momentum and trigger a reversal, marking a valid retracement to the broken level. If this happens, Ethereum’s next target would likely be the decisive psychological support level of $2,000.

Source: TradingView The 4-hour chart

On the 4-hour chart, the cryptocurrency is showing signs of revival near the significant support level of $2,000, leading to minor corrective pullbacks.

However, the price has now reached a critical resistance zone, bounded by the 0.5 and 0.618 Fibonacci levels. This area is expected to face increased selling pressure and is likely to be the main target of the current corrective move.

Given this resistance, it seems likely that ETH will face rejection from this region, potentially continuing its downtrend towards the $2,000 support. However, if an unexpected bullish breakout occurs, the price could see a sharp rise, aiming to recapture the lower boundary of the wedge and the crucial $2.8 thousand mark.

Source: TradingView

By Shayan

Ethereum has recently experienced a significant price drop, leading investors to speculate whether the bearish trend will continue. However, futures market data suggests a reversal may be on the horizon.

The chart provided highlights Ethereum long liquidations, which measure the liquidation of perpetual long positions. In bull markets, a major liquidation event is often followed by a price rally as the futures market stabilizes and spot buying pressure takes over.

The recent cascade has led to massive long liquidations, reaching levels not seen since November 2022. This significant liquidation cascade likely indicates a cooling of the futures market, where many leveraged positions have been liquidated.

With the futures market potentially reset, if demand returns, Ethereum could be poised for another long-term bullish push.

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