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.
Disclaimer: This article provides informational content and should not be considered financial advice. The opinions expressed in this article are the author’s and do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.
