Renowned cryptocurrency market analyst, Tara, believes that Ethereum (ETH) may be preparing for a rebound after hitting a previous target low of $2,960. ETH has been affected by the ongoing market correction, dropping 23% from its high of $3,726 on April 9 to a two-month low of $2,850 on April 13. Although there has been a slight recovery from this low, ETH remains in a bearish zone, with volatile price movements as it strives to reclaim the $3,000 mark.
Tara’s analysis highlights these price movements and suggests that the bearish pressure could persist, potentially leading to a further drop to $2,700, which aligns with a significant retracement level. This bearish trend is expected as part of the ongoing correction.
However, in an updated report, Tara indicates that this correction may have already ended due to a shift in market sentiment. Bitcoin (BTC) recently reached its correction target of $59,700, experiencing a bullish surge above $63,000 during a retest. Ethereum has taken advantage of this upward trend, with green candle closes on the 1-hour chart since 07:00 UTC today. This change in momentum occurred after ETH retested the $2,960 lows, coinciding with Bitcoin’s retest of $59,700.
According to Tara, the $2,960 level is a strong retracement level that is often used as a launching pad for recovery. Ethereum has experienced this pattern, rallying by 4.71% in the last seven hours since touching $2,960.
As a result of this bullish shift, ETH has broken above $3,000 once again and aims to establish solid support above this psychological level. However, there is strong resistance at the Fibonacci 0.382 level of $3,115, as previously highlighted by Tara.
If the bears regain control, Ethereum will need to stay above $2,996 to prevent further declines to recent lows. This level aligns with the support formed by the upper trendline of a symmetrical triangle on the 1-hour timeframe.
Ethereum’s hourly RSI has been steadily rising following the drop to $2,960. The RSI currently indicates short-term bullish momentum, but Ethereum will need to surpass the 50-day EMA at $3,164 to confirm this bullishness, which also corresponds with the Fib. 0.382 level at $3,115.
CryptoQuant data confirms a decrease in Open Interest, suggesting a potential trend reversal from bearish to bullish for Ethereum. Additionally, the funding rate indicates a prevalence of long sentiment, indicating investor behavior at this point.
Furthermore, the Coinbase Premium Index has shown a slight increase recently, indicating growing demand for Ethereum among U.S. institutional investors. ETH is currently trading at $3,083, representing a 3.15% increase today as it continues on its path to recovery.
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