Here’s Why ETH Rate Could Begin Today On A Bullish Leg
Key Insights: ETH rate is right back where it began last week after starting the week on a bullish leg, only for a mid-week retracement to reverse its previous gains. The cryptocurrency rose as high as $2,880 last week but has cooled down by almost 12% to its $2522 press time. However…
Key Insights: ETH cost shows signs of cooling sell pressure as it approaches the RSI mid-level. Ethereum whale executes large long position as the price approaches the bottom zone of its 4-week range. Assessing risks of extended downside amid heightened geopolitical tensions and disrupted investor confidence. ETH rate is right back where it started last week after kicking off the week on a bullish leg, only for a mid-week retracement to undo its previous gains. The cryptocurrency surged as high as $2,880 last week but has since cooled down by nearly 12% to its $2522 press time. But will ETH price action continue its downtrend this week, or is another bullish attempt in the making? The bearish momentum that prevailed in the second half of the week seemed to be cooling off. This was particularly evident in its spot flows. For context, ETH spot outflows rose above $262 million on Friday. Outflows have since cooled down to $13.5 million in the last 24 hours…
Bulls try to take over at a key ETH price level. In fact, exchange outflows slightly outmatched inflows indicating that demand was attempting a comeback after the recent dip. The timing of this outcome was also noteworthy since the price recently tanked to the RSI’s 50% level where it was likely to bounce back. ETH price action/source: TradingView. Aside from the potential pivot at the 50% RSI level, ETH price action has been moving within a narrow range in the last 4 weeks. Its recent pullback led to a retest of the lower range. The above observations pointed toward the increasing possibility that ETH might begin the week with another bullish bounce. Interestingly, recent on-chain data backed the idea that demand was making a comeback. On-chain analysis revealed that one whale moved 8,500 ETH worth about $21.5 million from Bitget exchange to a private wallet. However, this was one of the few isolated incidents highlighting robust network activity…
Assessing risks of sustained downside. While ETH might be on the brink of another recovery rally today, the possibility of that happening depends on several factors. Among them is the recent geopolitical tensions coming out of the Middle-East, which has been threatening investor confidence. The same geopolitical factors might have influenced the cool off last week and might continue to dampen market sentiment as long as they remain active. Ethereum weekly price action has been ranging for the last 5 weeks, signifying a lack of directional confidence. The varying performance suggests that ETH price could potentially experience a massive directional spike once it picks a side. This could lead to either a strong bullish move with the prospects of the price pushing above $3,000, or a significant pullback that may push the price towards the $2,000 level…
Unfortunately, the geopolitical factors are highly unpredictable, but President Trump expressed interest in bringing peace between the two sides. If this happens, then the markets might possibly gear up for a strong return, and the opposite is also true in the event of more escalation. As far as sentiment is concerned, Ethereum slid into the fear zone on Saturday during which it dropped to 37. This marked the first time in weeks that the sentiment moved after a sustained prolonged period in greed. Ethereum sentiment also slightly recovered in the last 24 hours, during which it moved into neutral sentiment. This result indicated that investors were expecting further recovery. However, it is worth noting that sentiment could still decline further depending on both external and internal market factors…
