- Summary:
- Ethereum price on Monday declined below $3,000 for the first time in sixty six days, but how far up can it rise after a recovery?
Ethereum price returned to the upside on Tuesday, returning above the psychological $3k support after breaching that mark for the first time in 66 days on Monday. Ethereum’s decline was reflected in the spot ETF market, where its nine traded products registered outflows of $39.5 million.
Ethereum Price Upside Still Shaky
Meanwhile, Ethereum’s traded volume was up 136% at the time of writing, signaling a likely continuation of the upside. Also, Ethereum chain’s DeFi performance improved in the last 24 hours, denoting increased demand for ETH. The chain’s Total Value Locked (TVL) was at $63.6 billion, having risen by 4.6%. Ethereum price will likely stay on the ascent if the trend continues.
Also, the bullish case for Ethereum price is supported by a strong long/short ratio. According to Coinanalyze data, the coin’s long/short ratio was at 3.17% in the 4 hours preceding this writing. That shows net positive inflows that will add propulsion to the upside.
However, despite its resurgence, key momentum indicators show that ETH price is still vulnerable to a potential pullback. The coin trades below its Volume Weighted Moving Average (VWMA) which is at $3,370 on the daily chart as of this writing. That level also aligns with the 20-Day Exponential Moving Average (EMA). Therefore, ETH will need to retest these levels to send a more reliable signal of a sustainable upside in the coming days.
Ethereum Price Prediction
Pivot: Ethereum price pivots at $3,120 and the upside will prevail if action stays above that level. Otherwise, the sellers will be in control.
Resistance: Immediate barrier is likely to be at $3,230. However, a stronger momentum could clear that level and potentially test $3,340.
Support: ETH price is likely to find initial support at $3,070. Breaking below that mark will invalidate the upside narrative. Also, it could trigger a further decline to the second support at $3,000.