- Ethereum retests decade-long support, revisiting a trend line pivotal since 2016 and signaling potential market bottom.
- Technical indicators show early strength, with RSI recovering and MACD turning positive after a bullish crossover.
- Whales quietly accumulate, reinforcing support between $2,950–$3,050, hinting at the start of a strong upward move.
Ethereum (ETH) has entered back into one of the most significant support points in the history of its charts, namely an iconic trend line that has shaped the cryptocurrency for nearly a decade. Indeed, nearly nine years ago, the same level formed a pivotal point in the market. It would seem that history might be about to repeat itself.
At press time, Ethereum is trading at $3,054 with a 24-hour trading volume of $18.95 billion and a market cap of $368.80 billion. ETH price increased 0.81% over the last 24 hours.
ETH Retests Historic Cycle Base
A chart posted by Merlijn The Trader illustrates how Ethereum re-enters a support area that has acted as such since 2016. Every time the price of ETH approached such an area in previous cycles, most especially in 2017 and 2020, the market established a bottom, tested it, and then broke away to the upper side.
ETH is following the same pattern. The strong trend line that connects all these significant lows of the cycle has never been broken since its inception, and its retest at the current level represents an important technical indicator since it could be considered an early indicator of the beginning of the next long-term up phase.
Ethereum Indicators Signal Growing Strength
It appears that technical analysis indices are beginning to reveal signs of changes in the short-run momentum. The daily RSI stands at 40.76 and stays below the center level of 50, but continues to recover from the recent troughs. It can be deduced that the selling impulse loses strength from the preceding weeks.
In addition to that, the MACD turned positive after there was a bullish crossover. The fact that the MACD is at 34 indicates that there is early strength following weeks of decline. These factors combined suggest an increase in consumer confidence in ETH amidst its stabilizations around important support levels.
Ethereum Whales Accelerate Quiet Accumulation
Merlijn further posted a heatmap about the strong buy interest stacked between $2,750-$2,850. When ETH was in that range, it immediately moved back up, revealing that strong buyers were quietly taking in all the selling pressure.
Only shortly after the rebound, Ethereum moved through the sell zone around $3,200 and then retreated. Currently, the price range of around $2,950 to $3,050 indicates clear accumulation, which usually happens at the beginning of a strong market movement.
Merlijn talked about the current stage in terms of where the market could attempt to weed out late buyers before deciding which course to follow. It is always the case before a breakout or strong decline.
Also Read | Vitalik Buterin Reveals Ethereum’s 5x Gas Limit Increase Strategy
Ethereum Approaches Critical Breakout Zone
In Daan Crypto Trades’ analysis, Ethereum is ranging in the zone between $2,600 and $3,000. Crossing above $3,050 with strength can potentially lead to $3,300-$3,400 target, and any failure to support above $2,600 can reduce the strength of the pattern and turn the target towards $2,000-$2,200.
Although there is uncertainty in the shorter term, most analysts believe that Ethereum can potentially attain $9,000-$10,000 in the future, assuming the long-term pattern unfolds as it has in the preceding cycles. In any case, patience and close observation of the pivotal levels must occur in advance of anything significant happening.
Also Read | Ethereum Holds $2,622 Support, Eyes Bullish Run Toward $10,000
