Ethereum’s recent price action has sparked curiosity among traders and investors. Despite a 17% slump over the past week, Ethereum (ETH) is now clinging to its 100-day Exponential Moving Average (EMA) with bulls hoping for a recovery.
With its market cap slipping below $400 billion, many are asking: is Ethereum poised for a significant move back towards the $4,000 mark?
Let’s dive into the current market dynamics and price targets for ETH.
Analysis
Ethereum’s price has shown some resilience, bouncing slightly above the 100-day EMA. As of now, ETH trades at $3,295, showing an intraday gain of 0.52%. However, the bullish momentum remains tentative after last weekend’s bearish trend.
A closer look at the daily chart reveals some key points:
- Bearish Weekend: Ethereum dropped 3.84% on Saturday, forming a bearish engulfing candle. This was followed by another 1.75% drop on Sunday.
- Doji Candle Formation: Currently, ETH is showing indecision in the market, forming a doji candle just above the 100-day EMA. This signals a potential pause in bearish momentum.
- Fibonacci Resistance: The 61.80% Fibonacci retracement level at $3,180 has emerged as a significant hurdle for ETH, with price struggling to break higher.
The Relative Strength Index (RSI) adds complexity to the picture. It is approaching the oversold zone, suggesting that selling pressure could ease soon, but a short period of consolidation may be needed before a reversal occurs.
ETFs and Institutional Sentiment
The broader market sentiment has also played a critical role in ETH’s price movement. Ethereum ETFs had a mixed week, with both inflows and outflows impacting its performance:
- Bearish Outflows: Last week saw ETH ETFs lose $60.47 million, with Friday alone contributing $75.12 million in outflows.
- Bullish Momentum Intact: Despite the bearish pullback, Ethereum ended its fourth consecutive bullish week with a net inflow of $62.73 million.
These mixed signals reflect a cautious optimism among institutional investors, leaving room for potential upside if market conditions improve.
Targets
What’s next for Ethereum? If Bitcoin, the market leader, regains bullish momentum, ETH could follow suit. Here’s a look at the possible price targets based on technical analysis:
| Price Level | Significance |
|---|---|
| $3,553 | Immediate resistance |
| $4,000 | Key psychological level |
| $3,180 | Solid support |
| $3,944 (200-day EMA) | Longer-term resistance level |
The convergence of the 200-day EMA at $3,944 and the $3,000 psychological mark underscores a potential foundation for a sustained rally.
Ethereum’s price trajectory could shift rapidly if broader market conditions, such as Bitcoin’s performance or institutional buying, improve.
For now, bulls appear to be holding the line, but a decisive move above $3,300 could set the stage for further gains.
