Ethereum (ETH) recently experienced a 13% drop, with its price falling in late September. Despite this drop, the cryptocurrency is holding above an important support, suggesting that the cryptocurrency may be poised for a recovery.

Investors are now looking for positive signals that could boost ETH, bringing new opportunities for a new price jump.

Ethereum Investors Are Resilient

Ethereum’s long-term holders (LTHs) are showing strength, as indicated by the Liveliness metric. This indicator tracks the behavior of LTHs, decreasing when they accumulate and increasing when they liquidate their holdings.

Currently, long-term holders are in accumulation mode, a sign considered positive for Ethereum's trajectory.

As more holders choose to hold on to their coins, the potential for a further bounce increases, signaling long-term confidence. This stability could be the foundation Ethereum needs to break out of its current resistance levels.

Ethereum Liveliness. Fonte: Glassnode

From a technical perspective, Ethereum is also showing signs of macro-bullish momentum. The Relative Strength Index (RSI) has been trending positive since early August, hovering near the neutral line of 50. Once this line turns into support, the bullish momentum is likely to gain further strength.

As such, macro momentum, supported by technical indicators, suggests that Ethereum is building a solid foundation for further gains.

If the broader cryptocurrency market remains stable, the asset could capitalize on this momentum and target higher price levels in the coming weeks.

Ethereum RSI. Fonte: TradingView

Read more: Ethereum ETFs – Understand what they are and how they work

Price forecast

Ethereum is currently trading at $2,431, holding above the critical 0.236 retracement level at $2,400. As long as ETH remains above this level, it is likely to continue consolidating as it awaits a bullish trigger that could boost its price.

Should the expected bullish signals arrive, ETH could surge towards $2,591. This level coincides with the 0.382 retracement level, and flipping it into support could allow the price to rally towards $2,745.

Notably, this price point has remained unreached for the past six weeks, making it a key target for a potential breakout.

Ethereum Price Analysis. Source: TradingView

However, if Ethereum fails to mount enough momentum to break above $2,591, the price could consolidate within this range, remaining above $2,400. Such a lack of movement would invalidate the bullish outlook, leading to an extended period of sideways trading.

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