[Ethereum price recovery from 8-month low may be tough]
Recent market sentiment suggests that Ethereum may be about to recover, but prices are still range-bound and the road to recovery may be more difficult than expected. The MVRV long-short holding divergence indicator fell into negative territory for the first time since November 2023, reflecting uncertainty in the market where short-term price action remains under pressure.
Short-term holders are mostly speculators, while long-term holders are considered "strong hands." The two currently break even, indicating short-term market weakness. However, technical indicators such as funding rates are still showing optimistic signals, and traders and investors are anticipating a recovery in price. Although Ethereum is still in downward mode, underlying momentum may push the price higher.
In the short term, Ethereum price is likely to trade between $2,681 and $2,344. Holding support at $2,344 could avoid further losses and could lead to a breakout of the previous high of $2,681. On the other hand, a break below $2,344 could push the price towards $2,170, further testing the downward trendline and making recovery more difficult.
