Ether’s price recently retreated after an intense rally, but this dip may offer a buying opportunity at lower levels due to sustained demand.
Key Insight:
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Ether appears overbought; however, the modest price pullback indicates that bullish traders are still holding strong.
SharpLink Gaming and BitMine Immersion Technologies have been actively purchasing Ether (ETH), striving to become the largest public holders of the cryptocurrency. BitMine claimed this status by reporting a holding of 300,657 ETH last Thursday, but SharpLink surpassed this after recent acquisitions, elevating its custody to 360,807 ETH.
Will the continued acquisition of ETH by these firms contribute to pushing the price beyond $4,000? Let us examine the market data.
ETH Price Outlook
Following a peak near $3,860, ETH’s price dipped below the $3,745 support level, signaling profit-taking from short-term investors.
The ETH/USDT trading pair could retrace to the 38.2% Fibonacci level at $3,494. A rebound from this point would show strong buying demand, potentially leading to an attempt by bulls to push prices toward $4,094.
Conversely, if ETH closes below $3,494, it could slip further towards the 50% Fibonacci retracement at $3,381, and possibly the 20-day exponential moving average (EMA) at $3,234. A break beneath the 20-day EMA would favor bearish momentum, with prices potentially falling to $2,904.
On the four-hour chart, the 20-day EMA has flattened, and the Relative Strength Index (RSI) has dipped below the midpoint, indicating equilibrium between buyers and sellers. To reignite the rally, buyers must push ETH above $3,860 to open the path towards $4,094.
On the downside, a close under the 50-day simple moving average (SMA) would suggest renewed selling pressure, which may trigger declines to levels near $3,477 and $3,361.
This information is for educational purposes and is not financial advice. Trading cryptocurrencies involves risks, and it is essential to conduct thorough research before investing.
