Ethereum Price Outlook: The Ethereum (ETH) cryptocurrency recently underwent a notable retreat, witnessing a 5.5% decline over four days, bringing its value down to $2,022. This pullback aligned with Bitcoin’s retracement to $36,000, prompting speculation about Ether’s future trajectory—will it persist in its recovery or encounter a fresh correction?
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Is the Correction Trend Set to Continue?
The rejection at $2030, characterized by a prolonged tail, indicates that the Ethereum (ETH) price has discovered robust support at this horizontal level. Following the breakout, the ensuing rally has the potential to propel the price by 9%, reaching a significant resistance point at approximately $2250.
The intraday trading volume for Ether stands at $11.6 billion, signaling a 10% decline.
Over the last month, Ethereum has demonstrated a noteworthy recovery, marking a 38.44% increase from a low of $1,543 to a high of $2,136. Despite this positive trend, a closer analysis of the daily chart reveals that the recovery is unfolding within the confines of a rising wedge pattern.
This pattern has been influencing Ethereum’s price movements for the past 16 months, with the coin’s value oscillating between the converging trendlines that serve as dynamic resistance and support.
In its recent approach to the upper trendline of this pattern, the altcoin experienced a minor pullback to $2,200, likely indicative of an attempt to gather bullish momentum. Sustaining positions above the support levels at $1,222 or $1,830 could set the stage for a potential 9% surge from the current price, targeting the overhead trendline at approximately $2,240.
However, historical price patterns suggest that a retest of the resistance trendline often leads to increased supply pressure and a substantial correction. In this scenario, a pullback to the $1,700 level may be anticipated based on past price behavior.
Whale Activity Indicates Potential Correction Ahead.
As of November 14th, on-chain data provider Lookonchain, using its X platform, brought attention to notable activities by smart money investors in the Ethereum market. Over the past week, there have been substantial transactions, signifying active participation by whales in the market. Intriguingly, a significant portion of these transactions appears to involve profit-taking or the transfer of assets back to exchanges, suggesting a preparedness to sell. This heightened activity may contribute to increased supply pressure on Ethereum, potentially resulting in a further decline in its price.