The indicators of Altcoin suggest that ETH has slipped below a potential market bottom on the chart.
Dropping below 2.4K USD could push ETH down to 2.3K USD.
Like most other Cryptocurrencies on the market, Ethereum [ETH] has also been affected by price adjustments in the past 24 hours. In fact, the latest drop of ETH has brought this code closer to a significant support level on the chart.
In the case of a successful test, does ETH have any chance of returning to the 3K USD mark?
The latest support level of Ethereum
Ethereum's loss in the past 24 hours exceeded 5%, with this altcoin trading just above 2.5K USD at the time of reporting. Meanwhile, Ali, a famous Cryptocurrency analyst, shared a tweet revealing an important development.
Accordingly, ETH has previously successfully maintained support at 2.4K USD. However, the recent price drop may once again push this code down to that level.
Notably, ETH has been moving in an upward channel pattern since 2021. This code has tested this pattern several times. If history repeats itself, expecting the king of altcoins to aim for 3K USD in the coming days is not too far-fetched.
In fact, if everything goes well, ETH could even reach 4K USD in the coming months.
Source: X
The possibility of ETH reaching 3K USD
TinTucBitcoin then examines Ethereum's on-chain data to see if this code can start moving towards the 3K USD level soon. According to our analysis of data from Glassnode, the price of ETH has slipped below the potential market bottom of 2.58K USD.
The Pi Cycle Top indicator suggests that the potential market peak of ETH could reach 5.7K USD. Therefore, expecting ETH to reach 3K USD will not be too ambitious for investors.
Source: Glassnode
Our assessment of data from CryptoQuant also indicates some positive metrics. For instance, ETH reserves on exchanges have decreased. This shows high buying pressure for ETH, which often leads to price increases.
Regarding the derivatives market, everything seems optimistic. The funding rate of ETH shows that long-position traders are dominant and willing to pay for short-term traders.
Additionally, the buy/sell ratio of derivative users of Ethereum has turned green. This indicates that buying sentiment is prevailing among derivative investors.
Source: CryptoQuant
Ultimately, TinTucBitcoin's analysis of data from CFGI.io suggests that the fear and greed index of Ethereum is at a level of 'fear'. Whenever this index reaches this level, it implies that the likelihood of a trend reversal is high.
However, if the downtrend continues, investors may soon see ETH testing the support level of 2.4K USD. An unsuccessful test could push this code down to 2.3K USD in the following days.
Stay tuned for @TinTucBitcoin for the latest updates.
#tintucbitcoin #Write2Win #btc #binance #bitcoin $BTC $ETH $BNB
