Ethereum Price Bounces Back After Weekend Crash
After experiencing a significant price crash over the weekend, the Ethereum price has managed to bounce back with a more than 10% increase, reclaiming its position above crucial support levels. Despite this recovery, the second-largest cryptocurrency is still facing uncertainty, with geopolitical and macroeconomic factors remaining volatile. Chart analysis also indicates inconsistencies in Ethereum’s movement, adding to the overall uncertainty in the market.
Ethereum Price Struggles at EMA
According to crypto analyst Swallow Academy, Ethereum’s price has returned to trading around its Exponential Moving Average (EMA) following a rebound from its weekend lows. The EMA, located at the $2,400 level, has historically served as a significant support level for Ethereum. The recent drop from $2,500 to $2,150 has raised concerns among investors, but the price’s retest at the EMA suggests that buyers are actively influencing the market.
The analyst highlights that the current situation for Ethereum is a waiting game, as the price could go in either direction. A breakout above the $2,800 resistance could signal a bullish trend, while a downturn below $2,000 would indicate a rejection and potentially lead to further losses.
Mapping Out Next Steps
Crypto analysts are closely monitoring Ethereum’s price movements to anticipate its next moves. Mister Spread has pointed out a bullish Power of 3 (PO3) pattern in Ethereum’s price action, consisting of accumulation, deviation, and expansion phases. The accumulation phase has been completed, leading to the deviation phase that triggered the recent price crash. However, the price is now showing signs of breaking out of the deviation phase, hinting at an upcoming expansion phase.
If Ethereum successfully enters the expansion phase, analysts expect the price to target the supply area between $2,800 and $3,000. Failure to sustain upward momentum and a drop below $2,100 could invalidate this bullish scenario.
In conclusion, Ethereum’s price recovery after the weekend crash has provided some relief to investors, but the market remains uncertain. Chart analysis and expert opinions suggest that Ethereum’s price movements in the coming days will be crucial in determining its future direction. Stay tuned for updates as Ethereum continues to navigate through these turbulent times.
[Featured image from Dall.E, chart from TradingView.com]