In line with the general market trend, Ethereum [ETH] experienced a decline in value over the past 24 hours, with the latest drop bringing the token close to a critical support level according to market indicators.
Given a successful validation, what are the prospects of ETH revisiting the $3k mark?
Recent Support Levels for Ethereum
ETH witnessed a decrease of over 5% within the last day, currently trading slightly above $2.5k. Noteworthy is a recent update from a prominent crypto analyst named Ali, who highlighted an essential development regarding ETH. The coin has previously demonstrated resilience at the $2.4k support level. However, the recent downturn could potentially retest this level.
It is worth mentioning that ETH has been following an upward channel pattern since last year. Having tested this pattern on multiple occasions, historical data suggest a potential move towards $3k for the leading altcoin in the near future. In fact, if market conditions remain favorable, a $4k valuation might be on the horizon for ETH.
Chances of ETH Reaching $3k
Analysis of Ethereum’s on-chain data by CryptoCrypto revealed insights on the feasibility of a surge towards $3k. Data sourced from Glassnode pointed out a breach of the potential market floor at $2.58k.
The Pi Cycle Top indicator indicated a probable market peak for ETH around $5.7k, making a return to the $3k mark a reasonable expectation for investors.
Further examination of CryptoQuant’s data uncovered several positive indicators. Notably, a decrease in ETH’s exchange reserve signals high buying pressure, typically leading to price increases.
On the derivatives market front, sentiments were largely bullish. With long positions dominating and Ethereum’s taker buy/sell ratio favoring purchasing activities, optimism among derivative traders was evident.
Looking at CFGI.io’s data, Ethereum’s fear and greed index currently reflects a ‘fear’ sentiment, suggesting a potential shift towards a bullish market sentiment in the future.
Should the bearish trend persist, investors could witness a test of the $2.4k support level, with a break potentially driving the price down to $2.3k in the near term.