This king of Altcoins is showing signs of resilience after a recent market crash. The digital asset currently trading at $2,709 has experienced a 3.05% increase in the last 24 hours, with its market cap rising to $324.2 billion.
The crypto market faced a crash on August 5th, with ETH plummeting to a low of $2,116 amidst growing recession fears. However bulls managed to defend this critical support level preventing further declines. This support acts as a retest to a descending channel that saw a breakout on May 20th preceding a rally to $3,973
Since reaching peak levels near $4,000 in May driven by anticipation surrounding a potential spot ETF, Ethereum has experienced a huge correction. The altcoin value dropped by 46% to the recent $2,116 support level. Despite this drop ETH has been showing signs of recovery in recent days.
Technical indicators are now pointing towards a potential bullish reversal. The RSI which a key momentum indicator has climbed to 39 after dipping into oversold territory at 20. This movement out of the oversold region often signals an impending upward trend.
Crypto analyst Ali Martinez highlighted on X that a crucial support zone for Ethereum between $2,314 and $2,435 where 2.14 million addresses have acquired 51.67 million ETH. This concentration of buying activity could provide strong support for the asset's price.
Martinez also identified a bullish pennant formation on lower timeframes suggesting a potential 4% rise towards $2,820. This technical pattern coupled with an increasing ETH Long/Short Ratio from Coinglas indicates growing bullish sentiment among futures traders.
The next significant resistance level for Ethereum lies at $2,863. A breakthrough above this point could signal a continuation of the recovery trend. From a technical analysis perspective, Ethereum recent price action forms a descending channel pattern on the daily chart. The successful support of this channel at $2,116 is a positive sign for bulls.
The MACD indicator is showing signs of a potential bullish crossover on the daily timeframe. If confirmed, this could provide additional momentum for upward movement.
Volume analysis reveals a spike in buying pressure following the bounce from the $2,116 support, indicating strong interest from buyers at these levels. The On-Balance Volume (OBV) indicator has also started to trend upwards suggesting accumulation by larger players.
Looking at on-chain metrics, the number of active addresses on the Ethereum network has seen an increase in recent days, potentially signaling renewed interest from users. Additionally, the gas fees on the network have stabilized which could encourage more transaction activity.