Ethereum Forecast: Short-term decline may provide opportunity for future rise
As of now, Ethereum is experiencing a minor downtrend, hitting a key Fibonacci retracement support level of around $3,028. This technical indicator has proven to be significant in determining both support and resistance levels for traders.
The Fibonacci retracement tool suggests that if ETH falls below this support level, it could fall further to $2,900, which would represent a 50% retracement from recent highs. Historically, this level has proven to be a strong support level, leading to recoveries in previous downtrends.
If the $3,028 support level holds, it could serve as a springboard for ETH to rally towards its target of around $3,970, significantly boosting investor confidence.
Market sentiment around Ethereum has shown signs of selling pressure, thanks to recent trading volumes and active addresses. The massive sell-off can be traced back to more than 32,600 ETH being moved to exchanges, a move likely aimed at liquidation.
The price drop is accompanied by a significant increase in active addresses, which usually indicates selling activity. In this case, the transaction usually involves more sellers than buyers, causing the price to fall.
The confluence of these data points suggests that Ethereum may be approaching a decisive moment, where a brief decline could occur before a new bullish trend emerges.
While Ethereum is currently facing challenges, signs point to a strong recovery in the near future. Exchange reserve data shows that the growth in ETH supply on exchanges is minimal, suggesting that most investors are holding rather than selling.
Both daily and weekly gains were small, at just 0.03% and 0.32% respectively, which bodes well for Ethereum’s price to remain stable in the coming weeks.
If ETH can sustain above the key level of $2,900 during this pullback, it could lead to a quick recovery and subsequent price gains as the sentiment turns to buying.
Although Ethereum is currently facing downward pressure, intrinsic market factors and technical indicators suggest that it has the potential for a strong rebound. Investors should pay close attention to key support levels and market flow data to formulate position strategies accordingly. The short-term outlook seems challenging, but Ethereum's price action remains a focus for traders due to solid support and bullish long-term trend.
Again, every pullback is the best time to deploy spot in the big cycle: ETH spot can be increased at this current price
Contract operation suggestions: 3080 long order entry: replenishment point 3040: risk control 3018
Target: 3160-3230
Patiently hold spot
