Last week witnessed a decline in Ethereum (ETH) prices, with bears firmly in control. This recent drop might present a prime opportunity for investors to purchase ETH at a lower price. With ETH trading at a critical resistance level, a breakout could trigger a significant price surge in the upcoming weeks or months. Data from 21milyon.com indicates that Ethereum experienced a price correction, falling over 2% last week.
What Happens at the Resistance Level?
Currently, ETH is valued at $3,687.02, possessing a market cap exceeding $442 billion. However, this trend could reverse if ETH surpasses a substantial resistance level. Cryptocurrency analyst Milkybull highlighted this on Twitter, suggesting that a breakout at this level might herald a major bull rally.
Furthermore, Milkybull noted that this could be the last chance for investors to acquire ETH below $3.7k in this market cycle. Data from CryptoQuant shows that ETH’s net deposits on exchanges are low compared to the seven-day average, possibly indicating high buying pressure. Conversely, a downward trend in ETH’s Coinbase Premium might suggest a strong selling trend among US investors.
How Does Glassnode Evaluate ETH?
Glassnode, a cryptocurrency analytics firm, reports that the Pi cycle top indicator suggests ETH’s price is nearing the market’s lowest level. This proximity could signal an imminent upward momentum, potentially pushing ETH’s price to $4.8k, marking a positive trend.
Analyses reveal a bearish crossover in the MACD, favoring sellers. The Relative Strength Index (RSI) is also trending downwards, remaining below the neutral mark, which might indicate continued price drops. However, the Chaikin Money Flow (CMF) has been ascending towards the neutral level, suggesting a potential upward trend.
Investor Insights
Key takeaways for investors from the current ETH market scenario include:
- Recent price decline presents a buying opportunity for ETH.
- A breakout above resistance could initiate a significant bull rally.
- ETH might target $4.8k if momentum shifts positively.
In conclusion, while bearish indicators prevail, the potential for an upward trend remains. Investors should monitor key resistance levels and market signals closely.
