Ethereum: Analysis of Whether $4.8k Is Within Reach for ETH
Financial Expert
- The price of Ethereum has fallen by over 2% in the last seven days.
- A metric suggested that the price of ETH was near its market bottom.
Ethereum [ETH] bears dominated the last week as the price of the token fell. However, this could be the last chance for investors to accumulate more ETH while the price is low.
ETH was at a crucial resistance level, and a breakout above it could lead to a massive rally in the coming weeks or months.
Should you buy ETH now?
Data from CoinMarketCap showed that Ethereum experienced a price correction last week as its value fell by more than 2%.
At the time of writing, ETH was trading at $3,687.02, with a market cap of over $442 billion. However, this bearish price trend could soon change as ETH is testing a key resistance level.
Milkybull, a popular crypto analyst, recently posted a tweet revealing this development. A breakout above resistance would trigger a massive bull rally.
Therefore, this could actually be the last chance for investors to buy ETH below $3.7K this cycle.
AskFX then checked ETH’s on-chain data to see if investors took advantage of this opportunity to accumulate.
According to our analysis of data from CryptoQuantthe net deposit of ETH on exchanges was low compared to the last seven-day average, indicating high buying pressure. However, the other data sets suggested otherwise.
For example, ETH’s Coinbase Premium was red. This clearly meant that selling sentiment prevailed among US investors.
Source: CryptoQuant
Predictions for the future of Ethereum (ETH)
AskFX then took a closer look at Ethereum’s current state to better understand if a price surge is possible in the near future.
AskFX’s look at Glassnode’s data revealed that ETH’s price was near its market low according to Pi Cycler’s top indicator.
This meant that the chances of ETH gaining bullish momentum in the coming days are high. If that happens, ETH could soon reach $4.8K, which is optimistic.
Source: Glassnode
We then looked at the token’s 12-hour chart to see what market indicators suggest in terms of a short-term price increase.
According to our analysis, the MACD seemed to be in favor of the sellers as it showed a bearish crossover.
Read Ethereum [ETH] Price Prediction 2024-25
Its Relative Strength Index (RSI) also remained bearish as it was below its neutral mark. These indicators suggested further price decline.
Nonetheless, the Chaikin Money Flow (CMF) turned bullish in the past few days by moving north towards the neutral mark.
Source: TradingView
