Similar to many other cryptocurrencies, Ethereum [ETH] experienced a drop in its price over the past 24 hours. During this time, ETH faced a significant correction which brought the token close to a key support level on the charts.
Considering the current scenario, what are the odds of ETH reclaiming the $3,000 mark?
Recent Support Levels for Ethereum
ETH encountered a decrease of more than 5% in the last day, trading slightly above $2,500 at the time of writing. Interestingly, a prominent crypto analyst named Ali highlighted a crucial development via a tweet. The tweet mentioned that ETH had previously managed to hold onto its support level at $2,400. However, the recent price drop might lead the token back towards that support level.
It is worth noting that ETH has been following an upward channel pattern since 2021, being tested multiple times. If history repeats itself, there is a good possibility that the primary altcoin could surge towards $3,000 in the days ahead. Furthermore, reaching $4,000 in the upcoming months is not out of the question.
Chances of ETH Reaching $3,000
CryptoCrypto delved into Ethereum’s on-chain data to determine the likelihood of the token moving closer to $3,000 in the near future. Based on an analysis of Glassnode’s data, the price of ETH slipped below its potential market bottom of $2,580.
With the Pi Cycle Top indicator suggesting that ETH’s potential market peak might be at $5,700, anticipating a $3,000 price tag for ETH could be a reasonable expectation for investors.
Further evaluation of CryptoQuant’s metrics unveiled a number of positive indicators. Notably, ETH’s exchange reserve decreased, signifying heightened buying pressure on ETH which often leads to price hikes.
Regarding the derivatives market, positive signs were observed. The funding rate for ETH indicated that long positions were dominant, with traders willing to pay those in short positions. Additionally, Ethereum’s taker buy/sell ratio showed a bullish sentiment among derivatives traders.
Lastly, an analysis of CFGI.io’s data by CryptoCrypto indicated that Ethereum’s fear and greed index had shifted towards a “fear” zone. This typically signals a potential bullish trend reversal.
However, if the bearish trend persists, ETH may retest its $2,400 support level soon. A failure at this support level could see the token drop further to $2,300 in the coming days.