Ethereum (ETH) is currently consolidating below $3,580, and despite a recent failed attempt to break out, investors remain optimistic about the HODL (hold on) strategy. The downward trend in the market activity indicator reflects this bullish sentiment, indicating that many investors are choosing to hold rather than sell Ethereum in anticipation of future price increases.
Ethereum Market Status
Currently, only 87% of Ethereum's circulating supply is in profit, which is far below the 95% upper threshold generally considered by the market, suggesting that Ethereum still has a lot of room for appreciation. This profit percentage data shows that Ethereum has not yet reached its price peak, leaving the possibility for further price increases.
ETH holders remain hopeful despite the bearish market trend after the price dropped from $3,800 to $3,580. This is further confirmed by the decline in activity indicators, showing that investors have confidence in the long-term value of Ethereum and are looking forward to a price breakthrough.
Price Prediction and Technical Analysis
Ethereum is currently trading at $3,492 and despite the consolidation, technical analysis shows that it is likely to break through the $3,582 resistance level. If this resistance level can turn into support, the price of Ethereum is expected to rebound to $3,700, thus recovering the recent losses. In addition, this price level will also be technically supported by the 50% Fibonacci retracement level.
However, if the breakout attempt fails, Ethereum may continue to trade sideways within the current price range. If the bearish sentiment in the broader market intensifies and the price falls below the $3,459 support level, the bullish outlook will be challenged. In this case, the price of Ethereum may fall further to the 38.2% Fibonacci level, which is $3,336. $ETH
Conclusion
Ethereum investors have shown a strong determination to hold on to the current market conditions, hoping that the price can break through. Despite certain market volatility and uncertainty, the low activity index and profitable supply ratio indicate that Ethereum still has upside potential.
Investors need to pay close attention to market dynamics and technical analysis indicators to grasp possible price changes and investment opportunities. As market sentiment and technical indicators continue to evolve, the future direction of Ethereum will become clearer.