According to Tara, a prominent crypto market analyst, Ethereum (ETH) may be poised for a rebound after hitting a previous target low at the $2,960 mark.
Ethereum has been impacted by the current market correction, experiencing a 23% decline from its April 9 peak of $3,726 to a two-month low of $2,850 on April 13. Despite a modest recovery from this low point, ETH remains in bearish territory, displaying volatile price action as it struggles to reclaim the $3,000 level.
In her analysis, Tara highlighted these price movements and suggested that the bearish pressure could persist, potentially leading to a drop to $2,700, closely aligning with a significant retracement level. This anticipated downward movement was anticipated as a result of the ongoing market correction.
ETH Completes Correction Phase
However, in an updated analysis, Tara affirmed that the correction phase might have concluded, citing a shift in market sentiment. Notably, Bitcoin (BTC) recently reached its correction target of $59,700 and surged above $63,000 in an impressive rally after the retest.
Ethereum has also benefited from this positive trend, with green candle closes observed on the 1-hour chart starting from 07:00 (UTC) today. This change in momentum followed ETH’s retest of the $2,960 support level, coinciding with Bitcoin’s retest of $59,700.
Tara highlighted the significance of the $2,960 level as a key retracement point. Typically, such support zones serve as launching pads for recovery attempts. As evidenced by Ethereum’s performance, it has surged by 4.71% over the last seven hours since touching $2,960.
![](https://sollcrypto.com/wp-content/uploads/2024/04/Screen-Shot-2024-04-18-at-10.17.55-PM.png)
Due to this bullish shift, ETH surged above $3,000 once more, aiming to secure solid support above this psychological threshold. However, Ethereum encounters strong resistance at the Fibonacci 0.382 level positioned at $3,115, as previously noted by Tara in her analysis.
Ethereum Seeks to Maintain Bullish Momentum
If the bears regain control, Ethereum must hold above $2,996 to mitigate the risk of further declines to recent lows. This level corresponds to the support established at the upper trendline of a symmetrical triangle formed recently on the 1-hour chart.
Despite Ethereum’s drop to $2,960, its hourly RSI has continued to trend upwards. This indicates short-term bullish momentum. However, to confirm this bullish outlook, Ethereum must surpass the 50-day EMA at $3,164, coinciding with the Fib. 0.382 level at $3,115.
At this critical juncture, CryptoQuant data indicates a decrease in Open Interest, hinting at a potential shift from bearish to bullish trends. Furthermore, the funding rate suggests a prevailing long sentiment among investors.
Additionally, the Coinbase Premium Index has seen a slight increase recently, indicating growing demand for Ethereum among U.S. institutional investors. Currently, ETH is trading at $3,083, marking a 3.15% increase today as it continues its recovery journey.