Ethereum (ETH) continues to battle strong selling pressure as it struggles to reclaim the $2,000 mark after dipping below the threshold on March 11. Despite multiple recovery attempts, broader market sentiment and resistance levels have hindered any significant breakout. However, on-chain indicators suggest that buying pressure is gaining traction, potentially setting the stage for a rebound.
Ethereum Bulls Defend Key Support
The last time ETH fell below $2,000 was in December 2023, before rallying to $4,000. While it failed to sustain that momentum, the Chaikin Money Flow (CMF) now indicates a potential price surge. The CMF measures liquidity inflow and outflow, and its current position above the zero signal line suggests increasing buying pressure. If this trend continues, ETH may avoid a drop toward $1,500, a scenario some analysts have predicted.
For a bullish move, Ethereum needs to hold above $1,861 and test the $2,227 resistance level. Failure to do so could trigger capitulation, leading to further declines.
Bulls Outpace Bears: On-Chain Metrics Favor an Upswing
The Bulls and Bears indicator, which tracks addresses controlling at least 1% of total trading volume, shows that bulls currently outnumber bears. This suggests growing buying activity, which could prevent another significant correction. If the trend persists, Ethereum may see a sustained recovery rather than prolonged consolidation.
ETH Price Eyes Breakout from Descending Triangle
Ethereum’s 4-hour chart reveals that the price remains confined within a descending triangle, testing lower highs. However, the price has held above the horizontal support line, indicating resilience from buyers.
The Moving Average Convergence Divergence (MACD) has also flipped positive, signaling bullish momentum. If this persists, ETH could climb to $2,187 and potentially surge to $2,520 if buying pressure intensifies.
Also Read: Ethereum Hits 4-Year Low as Investors Flock to FloppyPepe (FPPE)
Conversely, failure to breach the upper trendline of the triangle could see Ethereum retrace to $1,762. Whether bulls can maintain momentum or bears regain control remains to be seen, making the coming days crucial for ETH’s next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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