Is This An Opportunity To Retest $2800 Amid Bullish Technical Formation?

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ETH price hovers near the multi-month support with a negative bias. ETH opened lower and swiftly recovered to buck the downside momentum. But, the recent downswing pushed it toward a crucial juncture from where the downside in the price weighs more. A bounce back off the immediate support level might provide space for moving higher and collecting the buy-side liquidity.

ETH price sustains a crucial level

Source: Trading view

ETH’s price fell continuously since it made record highs near $4,867 in November. The formation of the ‘spinning top’ resulted in the price correction with depreciation of nearly 55% to the swing lows of $2,198.24. Now, the ETH price trades near the crucial support zone, where there is room to move further lower, given the lack of significant bullish volume.

However, the formation of the ‘Bullish piercing’ pattern makes the bull hopeful of some quick recovery. The move is further supported by the high volumes suggesting a probability of gain towards $2,600. An acceptance above the level will make a further attempt to take out the descending trend line of the parallel channel that coincides with $2,800.

The relative strength index (RSI) trades below the average line and approaches moving higher. Still, it reads below 40.

On the flip side, a shift in the bearish sentiment could mean an immediate pullback in ETH price. In that case, the price could dwell toward $1,700.

As of publication time, ETH/USD reads at $2,428, up 8.22% for the day. According to CoinMarketCap, the second-largest cryptocurrency holds the 24-hour trading volume at $46,761,621,186.

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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