Ethereum's price has been in a frustrating consolidation phase over the past few months, struggling to break above the $4,000 resistance level.
By TradingRage
On the daily chart, Ethereum recently bounced back from the $2,800 level and climbed up to the $3,500 resistance level. However, it was then pushed back down.
The price has also fallen below the 200-day moving average, which is around the $3,200 mark.
Currently, ETH is trading below the $3,000 support level and might drop further in the short term.
On the 4-hour chart, the recent rejection from the $3,500 resistance could be part of a larger bullish pattern.
This is because the price has corrected nearly 70% of its recent rise and is now in the Fibonacci retracement ‘golden zone.'
A rebound from this area is possible. However, the RSI (Relative Strength Index) is still below 50%, suggesting that the momentum favors further downward movement. Therefore, the market is in a tricky situation, and investors should be cautious.
By TradingRage
Analyzing the fundamentals of the Ethereum network can help us understand market dynamics better. It gives insights into the overall behavior of market participants.
One important metric is the Exchange Reserve, which measures the amount of ETH held in exchange wallets.
The chart shows that this metric has been sharply declining over the past few months. However, it has recently begun to rise, indicating that many investors are moving their ETH onto exchanges. This behavior is driven by fear and leads to excess supply, which could further drive down prices.
