Ethereum (ETH) Finds Support at $2,158 After Long Bearish Ride, Time to Buy the Dip?
The Ethereum price bounced back after finding support at $2,158. Before now, the price had been on a prolonged bearish trend, which led to an over 4% decline in one day.
This bearish sentiment results from the slight price decline of BTC.
Earlier this week, BTC dropped below $40,000 as more investors took a sell-off. On the bright side, the dip in ETH's price has created a potential buying opportunity for investors. Investors may consider taking advantage of the current situation.
Ethereum Recent Price MovementETH price has been volatile since the end of 2023. After dropping to $1900 in November 2023, Ethereum recovered in a few days as the bulls sustained their positions.
The price rose to $2,300 (21%), where it met strong resistance and dropped.
However, that sharp move quickly ran out of steam once resistance around $2300 put a ceiling on the rally. Profit-taking kicked in and sank Ethereum's price back to the $2100 zone within two weeks.
Since then, Ethereum has traded sideways between $2300 and $2100 as buyers and sellers battled for control.
Numerous breakout attempts in either direction failed during this period of uncertainty and back-and-forth action. Finally, Ethereum rallied 17.39% in early January from $2700 to $2300, breaking out of its trading range to the upside.
But resistance around $2700 stopped the rally in its tracks once again.
Ethereum's price returned to $2158 within days as selling pressure resumed control over the bulls. This series of failed breakouts and rejections shows a clear tug-of-war between optimism and pessimism around $2100 & $2700.
Neither bulls nor bears maintained enough strength to sway the trend decisively.
Ethereum Price Analysis: Short-Term Caution Amidst 50-Day MA Challenge, Long-Term Resilience Upheld by $2138 Support Zone
In the short term, Ethereum trades below its 50-day moving average line. Falling under this key average indicates that bearish momentum and selling pressure control the price action.
However, on the longer 200-day timeframe, Ethereum remains above its average. This signal sustained broader uptrend support despite recent volatility.
While below the 50-day average near-term, Ethereum has established notable support around $2138. This area has contained the decline and prevented further selloff. If the $2138 support zone continues holding, it increases the chances of a bullish reversal as soon as sellers stop.
However, losing this foundation would be problematic. Also, Ethereum's MACD sits below its signal line, reflecting bearish sentiment. However, the fading histogram bars suggest this negative momentum is decreasing.
In essence, Ethereum shows signs of basing and turning upwards, especially holding the critical $2138 support.
But to confirm that the bulls have taken back control, the 50-day average and MACD must become positive. Until clear trend change signals emerge, some caution remains prudent in the short term.
Recent Massive Transactions on the Ethereum Network and its ImpactA substantial Ethereum (ETH) transaction has recently grabbed attention in the crypto space. Just today, a renowned crypto tracking platform, Whale Alert, reported a significant movement of over 14,477 ETH, valued at more than $32 million.
- Whale Alert (@whale_alert) January 24, 2024
Whale Alert said this ETH was from an undisclosed wallet to Coinbase. Intriguingly, this follows a similar transfer of the same amount on January 23rd, raising eyebrows about the repeated large-scale transactions.
- Whale Alert (@whale_alert) January 23, 2024
Adding to the intrigue, an even more substantial movement occurred, involving around 25,000 ETH transferred from Bitfinex to an undisclosed wallet. These sizable transactions, particularly the repeated movement of 14,477 ETH to Coinbase, suggest a notable shift in the crypto landscape.
- Whale Alert (@whale_alert) January 23, 2024
The impact of these transactions on Ethereum's future remains uncertain, but everyone should takeprecautions.
Such substantial movements to major exchanges like Coinbase can influence market liquidity and potentially signal that significant holders aim to sell, affecting prices in the short term.
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