Significant changes in Ethereum's price have occurred in the past 24 hours, potentially indicating future shifts.
Technical Analysis
The article reviews the latest chart data and Ethereum price 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 drop has seemingly come to a halt. However, the market structure remains bearish, as the price should at least reclaim the $2,700 level to make a higher high. Recent movements indicate the formation of a price bottom, making a new uptrend probable in the coming months if the $2,100 support level remains intact.
The 4-Hour Chart
The 4-hour chart presents a clearer demonstration of recent price action. The market immediately bounced from the $2,100 support zone and has been gradually climbing since. While the momentum is still weak, an impulsive move toward the $2,700 resistance level could occur, as recent bullish 4-hour candles have been getting stronger.
Sentiment Analysis
While technical analysis indicates a potential price bottom, sentiment analysis reveals some worrying signals from on-chain data.
Ethereum Exchange Reserve
This chart shows the total amount of ETH held in exchanges. The metric is a proxy for supply, as these coins can be sold anytime, adding to selling pressure. While the general trend of reserves indicates accumulation by investors since last year, short-term fluctuations also matter. Recently, reserves have risen above their 30-day moving average, typically preceding a price drop. Further price declines are possible in the short term if demand fails to meet supply.
In summary, Ethereum's further price behavior will depend on holding the $2,100 support level and having sufficient demand to overcome supply pressure. Monitoring exchange reserves and technical indicators remains key to forecasting market movements.
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