- Ethereum price is retesting the $2,608 to $2,812 daily demand zone, hoping for a reversal.
- A bounce off this barrier is likely to revisit the lower limit of the daily supply zone, ranging from $3,188 to $3,393.
- A daily candlestick close below $2,608 will invalidate the short-term bullish thesis.
Ethereum price faced rejection from a stiff resistance barrier twice, resulting in a double-digit correction. The resulting downswing is currently bouncing off a stable support level, suggesting the possibility of a trend reversal.
Ethereum price contemplates recovery
Ethereum price encountered the daily supply zone, extending from $2,608 to $2,812 on February 9 and February 15. The bulls failed to push through this hurdle, resulting in a more than 10% correction both times.
This move pushed Ethereum price into the daily demand zone, extending from $3,188 to $3,393. This area is crucial, and ETH is more than likely to witness some sort of a bullish reaction.
From a conservative standpoint, Ethereum price might set up a lower high around the 50-day Simple Moving Average (SMA) at $2,997. In some cases, the move could extend to retest the lower limit of the supply zone at $3,188.
On the other hand, a massively bullish outlook would require ETH to slice through the supply zone’s upper limit at $3,393 and make a run for the convergence point of the 200-day and 100-day SMAs at roughly $3,600.
ETH/USDT 4-hour chart
Regardless of the bullish outlook, if Ethereum price produces a daily candlestick close below $2,608, it will invalidate the short-term bullish thesis. In such a case, investors need not fret as there is another support area ranging from $2,525 to $2,324.
Therefore, bulls have a barrage of support levels and areas to help recover losses and give the uptrend another go.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
TRON gains 10% in 2024, supply of stablecoins reaches over $50 billion in Q1
TRON, a blockchain-based digital platform, has seen positive growth in the first quarter of 2024, as seen in a Messari report. TRON noted gains across several metrics like market capitalization, revenue and total value locked.
XRP hovers near $0.50 as Ripple CTO addresses concerns related to stablecoin launch
XRP is hovering near $0.53 on Friday, spending nearly all week below $0.55. Ripple CTO David Schwartz addressed concerns on stablecoin and XRP utility on Thursday.
Terraform Labs set to restrict access for users in the US after recent ruling in SEC lawsuit
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.