Renowned crypto market analyst Tara believes that Ethereum (ETH) may be gearing up for a rebound after reaching a previous target low of $2,960. Ethereum has been significantly affected by the ongoing market correction, dropping 23% from its high of $3,726 on April 9 to a two-month low of $2,850 on April 13. Although there has been a slight recovery from this low, ETH remains in bearish territory and is struggling to regain the $3,000 mark.
Tara has analyzed these price movements and suggests that the bearish pressure could continue, potentially leading to a further collapse to $2,700, which aligns with a significant retracement level. This bearish push was anticipated as part of the ongoing market correction.
However, in an updated report, Tara states that this correction may already be over due to a shift in market sentiment. Bitcoin (BTC) recently reached its correction target of $59,700 and experienced a bullish surge above $63,000 during a retest. Ethereum has capitalized on this upward trend, with green candle closes on the 1-hour chart since 07:00 today (UTC). This reversal in momentum occurred after ETH retested the $2,960 lows, coinciding with Bitcoin’s retest of $59,700.
Tara highlights that the $2,960 level is a significant retracement level that often serves as support for a recovery push. This has been the case with Ethereum, as it has rallied by 4.71% in the last seven hours since touching $2,960.
As a result of this bullish shift, ETH has broken above $3,000 again and is aiming to establish firm support above this psychological level. However, Ethereum faces strong resistance at the Fibonacci 0.382 level at $3,115, as previously noted by Tara.
If the bears regain control, Ethereum will need to hold above $2,996 to prevent further drops to recent lows. This level coincides with the support formed by the upper trendline of a symmetrical triangle on the 1-hour timeframe.
Ethereum’s hourly RSI has continued to rise after the price drop to $2,960. The RSI currently indicates short-term bullish momentum, but Ethereum will need to surpass the 50-day EMA at $3,164 to confirm this bullishness, which also aligns with the Fib. 0.382 level at $3,115.
Furthermore, CryptoQuant data confirms a decrease in Open Interest, suggesting a potential trend reversal from bearish to bullish for Ethereum. The funding rate also indicates a predominance of long sentiment, indicating investor behavior at this point.
Additionally, the Coinbase Premium Index has shown a slight increase recently, indicating an uptick in demand for Ethereum among U.S. institutional investors. ETH is currently trading at $3,083, representing a 3.15% increase today as it embarks on its recovery journey.
It is important to note that this content is informational and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not liable for any financial losses incurred.