ETH has cooled off after the big breakout candle, which suggests a temporary pause in the bullish momentum. The price is currently holding the support area, which ranges from $1,900 to $2,000, and the wick below the support indicates stop hunting and a liquidity grab. This is a common phenomenon where traders' stop-loss orders are triggered, and liquidity is absorbed, creating a temporary dip.
The fact that the price is holding the support area suggests that buyers are still interested in ETH at these levels. We might see some accumulation at the support area before the next upward movement, as savvy traders and investors take advantage of the relatively low prices.
The Relative Strength Index (RSI) is also indicating a bullish divergence, suggesting that the recent price drop is not accompanied by a corresponding decrease in momentum. This could be a sign that the bulls are preparing for another push higher.
If the price can hold the support area and build a base, we could see a renewed upward movement, potentially targeting the $2,200 to $2,500 zone. However, it's essential to keep an eye on potential risk factors, such as regulatory developments and macroeconomic shifts, which could impact the crypto market.