Is Ethereum (ETH) Price Set for a Significant Recovery to Reach $3k?
Ethereum’s (ETH) price has surged more than 4 percent in the past day, reaching above $2,740 on Wednesday in a bid to regain bullish momentum. The leading altcoin boasts a fully diluted valuation of approximately $329 million and sees a daily average traded volume of about $13 billion. A key focus for Ethereum has been closing the CME gap situated between $2,737 and $3,030.
The current scenario indicates Ethereum’s price is on the cusp of reclaiming the weekly 200 Moving Average (MA) as a crucial support level post the recent crypto market turmoil. Nevertheless, the altcoin encounters a significant hurdle around $2,817, necessitating a stronger buying force to surpass selling pressure.
Furthermore, at the time of this report, Ethereum’s fear and greed index stands at around 36 percent, signaling a prevailing sentiment of fear in the market.
The aftermath of the recent crypto crash has triggered mixed sentiments within the altcoin sector, particularly in light of the $230 million WazirX hack. While some investors anticipate a temporary setback leading to a substantial recovery, others remain notably pessimistic about the market outlook.
Data analysis from Lookonchain reveals that Jump Trading has initiated the process of offloading remaining assets after a substantial sell-off last week. Notably, Jump Trading transferred approximately 17,000 Ether valued at over $46 million from Lido to exchanges for liquidation. On a different note, BlackRock has been actively acquiring Ether through its spot Ether ETF, ETHA, with a recent purchase exceeding $49 million worth of ETH.
Looking at the midterm price action for Ether, there are indications that the price against the US dollar could potentially form a bullish ascending triangle in shorter time frames. However, the altcoin is met with a notable resistance level below $3,000 amidst the prevailing bearish sentiment during August and September. Despite this, Ether’s price against the US dollar has seen an uptick after bouncing back from the support level around $2,125 last week.
In conclusion, Ethereum’s price movement and market dynamics continue to draw attention from investors and traders alike, with shifting sentiments and strategic maneuvers shaping the altcoin’s trajectory.
