ETH breaks sideways trend, sustains support for potential relief rally
After over a month of sideways resonance, Ethereum has finally sustained above the $2,140 support level, suggesting a conducive environment for a potential relief rally.
With how the crypto market grows with uncertainty, the reversal of Ethereum’s price is to be expected. The ETH price retreated from the $2,400 resistance, and over the last five days, the coin’s value dropped by 7.5 percent, settling at $2,247 presently.
The cryptocurrency’s price stability fluctuated between $2,140 and $2,400 before finally stabilizing after a significant January 4th sell-off. Many analysts point out how the support level now aligns with the 38.2 percent Fibonacci retracement.
Buyers are finding solid support at the combined $2140 level and the Fibonacci retracement. They may find an opportunity to revive the exhaustive bullish momentum and prolong the recovery trend through the combined support.
Faces no barrier
Despite Ethereum currently experiencing a significant drawdown, on-chain data signals a potential short to mid-term price surge. On-chain market analyst Ali Martinez notes that, according to the In and Out of the Money Around Price indicator, Ethereum faces no substantial barriers.
Approximately 65.4 percent of total wallets, equivalent to 7.82 million addresses, are currently profitable, while 34.5 percent or 4.13 million addresses are in losses.
With no apparent supply barriers, Martinez suggests a potential short-term surge to $2,700 for Ethereum, surpassing the conservative $2,500 projection. This level hasn’t been seen since early May 2022.
Furthermore, the U.S. Securities and Exchange Commission is signaling progress toward approving the first spot Bitcoin exchange-traded funds in the United States.
With the potential approval of spot Bitcoin looming next week, newcomers can seek bullish reversal opportunities at the $2,140 support for Ethereum. A bounce from this level could propel the coin’s price to test the $2,400 level. Post-breakout, the rally may also drive Ethereum to $2,675 and beyond.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
