Ethereum price rebounds, support holds, upside possible per analysts
Summary
- Ethereum price rebounded after filling a Fair Value Gap near $2,880 and now holds above key support areas identified by technical and on-chain analysts.
- Market observers note increasing whale accumulation, decreasing retail exposure, and that high leverage may trigger sharp moves; a neckline break in a bullish formation could set significant upside.
- Upcoming U.S. labor data could cause volatility, while Ethereum is seen entering a liquidity-accumulation phase with potential for upward continuation.
Ethereum price has rebounded after reaching $2,880, a level marked by earlier price inefficiencies, according to technical analysts tracking the cryptocurrency.
The digital asset filled what traders call a Fair Value Gap near that level and held above it, leaving no bearish gaps on the chart, according to market analysts. The cryptocurrency has moved back above key short-term zones, according to technical analysis.
Two support levels have been identified that align with major Fibonacci retracement zones and are viewed as potential accumulation areas, analysts stated. The levels could set up long opportunities for traders targeting higher prices, according to market observers.
Ethereum (ETH) showed a minor daily decline as of the latest trading session. Resistance zones have been placed at several higher levels, according to technical charts.
A longer-term pattern on the 3-day chart indicates a possible ascending inverse head-and-shoulders formation, analysts reported. The neckline has a slight upward slope and sits just above the current price. If the neckline breaks, the estimated move based on the pattern’s depth implies a substantial upside target, according to technical analysis.
Other analysts are monitoring broader levels that have been tested multiple times over the past two years. In the shorter term, a midrange level may act as support or resistance depending on market reaction, according to market observers. Current price action, combined with high leverage, leaves the market exposed to sharp moves, analysts noted.
Ethereum may have bottomed at $2.8k
On-chain data shows Ethereum recently touched a level that aligns with the realized cost basis for both retail traders and large holders, according to blockchain analytics. This area has served as a cycle low in the past, data shows. Whale addresses holding large amounts are reportedly adding to positions, while smaller wallets are reducing exposure, according to on-chain metrics. Liquidation data confirms the shift: long positions are no longer being liquidated at each dip, while short positions are increasing, according to derivatives data.
Another analyst noted that Ethereum closed its recent daily candle with a long downside wick, a signal that buyers may have entered late in the session. The focus is now on relative strength versus Bitcoin and short-term moves around a nearby resistance zone, the analyst stated. Holding above this zone would favor continuation, while a failure to hold could lead to sideways price action, according to technical analysis.
Upcoming U.S. labor data was identified as a potential trigger for volatility, especially through its effect on Bitcoin, analysts stated. Traders appear to be monitoring key levels and preparing for the next major move, according to market observers.
Ethereum appears to be entering a bottoming phase, with multiple indicators pointing to a gradual build-up of liquidity around key levels, according to technical and on-chain analysis.
