Ethereum Price Trend Shows Reduction in Overhead Supply
Following the remarkable recovery last Friday, the Ethereum price trend finds a significant reduction in the overhead supply. However, with the rising anticipations for a bullish market this week, will ETH price surpass the overhead resistance?
Currently trading at $2,261, the ETH price shows a minimal indecisive intraday trend that continues the streak from the weekends. The lazy price movement aligns with the lethargic price movement of Bitcoin at the start of Asian market hours.
With the reversal from the 38.20% Fibonacci level struggling to lift off, the 50-day exponential average line comes as a dynamic resistance. The ongoing brawl undermines the bullish engulfing candle formation from Friday and may result in a retest.
However, despite the failure, the ETH price may find a double bottom reversal to reclaim the lost momentum and break above the 50-day EMA.
Ethereum Teases a Bullish Stage for 2024 and Eyes $3K
Despite the rising sentiments and the resurfacing hopes of a bullish year, the altcoins market struggles to sustain the recovery rally of last week. Nevertheless, the biggest altcoin is setting a bullish stage for 2024 and teases a run beyond $3K this year.
If buyers can sustain above the $2200 level to break above the dynamic resistance, the bullish trend could reach the $2500 mark. Optimistically, as per the Fibonacci levels, the bull run can test the $2700 level.
On the flip side, if buyers fail to assert dominance over $2200, a bearish slip can result in an ETH price drop to $2000.
Ethereum HODLers: Are They Making Money?
With the Ethereum prices sustaining above the $2000 psychological milestone, the percentage of profitable addresses (in the money) is significantly higher. At press time, 78.08m addresses are in the money, accounting for 72.13% of total addresses.
Ethereum’s Total Value Locked Dips Below $32B
Despite the recent recovery rally, Ethereum’s total value locked (TVL) has dipped below $32 billion, putting pressure on the altcoin. This decline in TVL raises concerns for the altcoin’s performance in the market.
Technical Indicators Point Towards a Potential Bullish Crossover
The daily MACD and signal lines for Ethereum are continuing the bearish trend, but there is an uptick that teases a potential bullish crossover. This indicates a possible shift in momentum and a potential upward movement for ETH price.
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Analyst comment
1. Ethereum Price Trend Shows Reduction in Overhead Supply: Positive news. Market may see a retest due to ongoing resistance, but there is potential for a double bottom reversal and a breakout above the 50-day EMA.
2. Ethereum Teases a Bullish Stage for 2024 and Eyes $3K: Neutral news. Market struggles to sustain recovery rally. If buyers can break above $2200, bullish trend towards $2500 and $2700 is possible. But if buyers fail, a drop to $2000 may occur.
3. Ethereum HODLers: Are They Making Money?: Positive news. Percentage of profitable addresses is high. Ethereum prices above $2000 milestone. This indicates potential profitability for HODLers.
4. Ethereum’s Total Value Locked Dips Below $32B: Negative news. Decline in total value locked raises concerns for Ethereum’s performance in the market.
5. Technical Indicators Point Towards a Potential Bullish Crossover: Positive news. Bearish trend may shift towards a bullish crossover, indicating a potential upward movement for ETH price.
As an analyst, the market for Ethereum is displaying mixed signals. While there is potential for a bullish breakout, resistance and declining total value locked present challenges. Investors should closely monitor technical indicators and market trends to make informed decisions.
