Ethereum (ETH) has shown signs of weakness after a recent surge, with its price reflecting fatigue on the four-hour chart. The altcoin, which recently tested the imbalance zone on the daily timeframe, may encounter a short-term correction before resuming an upward trend. This retreat could serve as a significant buying window for investors keeping a close eye on the market.
Short-Term Pullback Alert
From Monday’s low of $2,086, Ethereum rose by approximately 30% to $2,724. This peak, occurring within the imbalance zone of $2,695 to $2,855, typically triggers short-term pullbacks. Investors might anticipate a decline towards the daily order block around $2,459 or $2,400, suggesting the uptrend remains intact as the Relative Strength Index (RSI) on the four-hour chart approaches the 50 mark. Despite the Awesome Oscillator (AO) issuing a buy signal, it might dip below the 0 level if ETH corrects.
Will $2,300 to $2,400 Hold?
On-chain data indicates robust buying interest within the $2,300 to $2,400 support range. Approximately 1.4 million wallet addresses have acquired nearly 50 million ETH in this bracket, hinting at potential accumulation by off-market investors if prices drop. This could spur a recovery in Ethereum’s price.
Moreover, significant investors, or whales, have accumulated 550,000 ETH over the past week. This influx is crucial for supporting Ethereum’s price, especially following the U.S. Securities and Exchange Commission’s (SEC) approval of spot Ethereum ETFs.
Insights for Investors
– A potential pullback could offer a prime buying opportunity.
– Strong buyer interest exists in the $2,300 to $2,400 range.
– Whale activity suggests confidence in Ethereum’s long-term prospects.
– The SEC’s approval of spot Ethereum ETFs is a positive development.
In conclusion, Ethereum’s recent price behavior suggests a short-term pullback is likely, presenting a strategic entry point for investors. The support range and whale accumulation signal strong underlying confidence in the asset.