- Ethereum’s price dropped by more than 7% in the last seven days.
- Most metrics and market indicators hinted at a trend reversal.
As an experienced market analyst, I’ve seen my fair share of price fluctuations in the cryptocurrency world. Ethereum’s [ETH] recent drop of more than 7% within a week is concerning, but it doesn’t tell the whole story. Most metrics and market indicators suggest that we might be witnessing a trend reversal.
In late May, Ethereum’s daily chart displayed a large green candlestick, signaling a bullish trend for the token. However, over the past week, investors have experienced significant losses as ETH saw a substantial drop in value.
As a researcher observing the Ethereum market, I’ve noticed a downward price trend. Nevertheless, there are signs that this trend could reverse soon, potentially enabling Ethereum to reach its previous highs from March.
Ethereum enters a bullish pattern
According to recent data from CoinMarketCap, Ethereum’s price experienced a decline of over 7% within the past week. Currently, Ethereum is priced at $3,516.89 and boasts a market capitalization exceeding $422 billion.
Investors need not lose hope as Ethereum’s daily chart shows a bullish trend, according to AMBCrypto’s analysis. This financial news outlet identified that the price of Ethereum has been confined within an uptrending triangle or bullish flag pattern.
After hitting its peak in May, the token joined the established trend by entering the pattern. Currently, the token’s value is challenging the lower boundary of the bullish flag pattern during our latest check.
If a test proves successful, it might trigger a significant surge in Ethereum’s price. In such a scenario, it would come as no surprise if Ethereum approached or even surpassed its previous high of $4k within the following weeks.
Will ETH test the pattern?
In the upcoming days, Ethereum (ETH) needs to record some green candlesticks on its chart for a potential bullish flag pattern to form and be tested. To evaluate this possibility, AMBCrypto examined the data provided by CryptoQuant.
Based on our investigation, the Ethereum (ETH) exchange reserves were decreasing, indicating strong demand for the token. Furthermore, there was a notable rise of 13.93% in the total number of coins transferred within the last 24 hours, suggesting a bullish trend.
In the derivatives market, there were positive signs for Ethereum (ETH) as its funding rate increased. This indicated that a larger number of long-position traders are in control and are prepared to compensate short-position traders.
According to AMBCrypto’s analysis of Glassnode’s data, the Network Value to Transacted Value (NVT) ratio for Ethereum decreased last week. Historically, a drop in this metric indicates that the asset may be underpriced, which often leads to price increases.
As a crypto investor, I’ve noticed that Ethereum’s price dipped down to the lower boundary of its Bollinger Bands recently. This could be a sign that the cryptocurrency is preparing for a rebound. Additionally, its Relative Strength Index (RSI) has started to climb upwards and is making its way towards the neutral mark.
Despite the MACD indicating a bearish edge in the market, Ethereum’s recovery might face challenges.
Read Ethereum (ETH) Price Prediction 2024-25
After examining Ethereum’s liquidation heatmap provided by AMBCrypto, potential areas of support and resistance for a possible bullish trend were identified. If Ethereum prices rise in the near future, it is anticipated that Ethereum may reach a price of $3,675.
If Ethereum doesn’t manage to break through the bullish flag pattern, it could potentially see a decline to around $3,500 in the near future.
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2024-06-15 08:07