As a Seasoned Crypto Investor with Battle Scars from the 2017 Bull Run, Here’s My Take
On the four-hour chart, Ethereum (ETH) seems to indicate it’s running out of steam as it revisits its daily imbalance. Investors might find ETH initiating a temporary downturn before the upward trend continues again. This dip could present itself as a beneficial moment for investors who have been on the sidelines waiting for an opportunity.
Ethereum Price Eyes Correction
The price of Ethereum has surged by approximately 30% since its low on Monday ($2,086) and may have reached a temporary peak at around $2,724. Notably, the highest point during Thursday’s trading session was within the daily time frame imbalance range of $2,695 to $2,855. Historically, such imbalances can frequently trigger short-term price reversals.
Consequently, Ethereum (ETH) investors might experience a slight dip towards the daily trading range around $2,459 or approximately $2,400. If this level holds steady, it may attract additional buying interest from investors who previously abstained during the initial post-recovery rally.
After the mentioned adjustment, the Four-Hour Relative Strength Index (RSI) will likely return to the average level of 50, indicating that the bull market is ongoing. Meanwhile, the Awesome Oscillator has given a buy signal by moving above its zero mean level, but it might dip below if Ethereum experiences a pullback.
Examining IntoTheBlock’s IOMAP (In/Out of the Money At Price) indicator reveals that significant support zones lie between $2,300 and $2,400. Within this span, approximately 1.4 million investors purchased around 50 million ETH at an average price of roughly $2,357.
As a consequence, some side-lined ETH buyers might take advantage of the dip by purchasing more ETH, potentially triggering a rebound.
Additionally, investors might observe that minor underwater investors exist and are not likely to hinder an increase if ETH‘s price rises. If this happens, predictions suggest that a rebound from $2,300 could lead to another attempt at reaching the $3,000 significant price point.
Ether Price Remains Bullish on HTF
According to Santiment’s data, significant Ethereum (ETH) holders have amassed approximately 550,000 ETH over the last week. This growth indicates a strong and sensible bullish trend, given the recent green light for a spot Ethereum Exchange Traded Fund (ETF). As such, it’s likely that the upward momentum in Ether prices will persist after a brief correction.
Moreover, at present, the Market Value to Realized Value (MVRV) for the past 30 days stands approximately at -10%, dropping as low as -21% on August 7. This negative figure indicates that investors who bought ETH within the last month are, on average, experiencing a loss of around -10%.
Typically, when the value drops between -10% and -30%, it’s often seen as a good time to buy, because short-term investors who are experiencing losses might decide to sell off, providing an opportunity for long-term investors to acquire these assets at lower prices.
In summary, the overall assessment based on technical and blockchain analysis suggests a robust bullish outlook for Ethereum’s price. If Ethereum (ETH) cannot maintain its position above the psychologically significant level of $2,000, it could challenge this bullish view, possibly leading to a correction towards $1,900.
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2024-08-09 15:04