Connect with us
Active Currencies 14820
Market Cap $2,362,819,868,673.50
Bitcoin Share 51.15%
24h Market Cap Change $-4.36

Ethereum’s pullback at this level offers an entry position for long trades

3min Read
Ethereum's pullback at this level offers an entry position for long trades

Share this article

  • ETH is on a pullback after a sharp recovery from the current market crash. 
  • Investors should watch the 0.236 Fib support level. 

Bitcoin (BTC) recovered from the 16.69K mark to 17K, injecting a lifeline into the industry. The king coin’s gains also boosted altcoins. 

Ethereum (ETH), the altcoin king, is positively correlated to BTC. As such, it witnessed a sharp recovery from $1,182 after BTC pushed to the 17K mark.

At press time, ETH was trading at $1,253 and nursing a price pullback to a Fib level that could offer buying opportunities. 

Source: TradingView

BTC’s recovery nudged ETH into a price inflection, marking the zero Fib level as a support zone. At press time, ETH was healing off from a post-crash rally. We observed a price pullback on lower timeframe charts. The 12-hour timeframe chart exhibited the same trend. 

The resting zone has been established at the 0.236 Fib level ($1216). The RSI retraced from the oversold territory, showing a reducing sell pressure. Correspondingly, the MFI also retraced from the oversold entrance level, showing accumulation was well underway for buyers. As such, $1,216 presents long trade entry positions with $1305 and $1307 as targets. 

The bullish inclination only holds if bulls can unleash high buying pressure in the coming days or hours to sustain the upward momentum. At press time, the OBV showed a downtick after a recent upside, thus showing uncertainty about incoming volumes that could dictate a strong sell or buy pressure. 

A candlestick close below $1,073 would invalidate the bullish inclination. ETH’s drop beyond this level could extend it further downwards if bears gain leverage; hence, a stop loss below it is feasible. 

ETH active addresses increase after price recovery from $1000

Source: Glassnode

ETH’s active address increased after the sharp recovery from the $1,182 mark. This shows that more active addresses were involved in ETH trading when its price surged. However, at press time, ETH had dropped slightly to below $1,300, and active addresses were also reduced. 

The drop in active addresses likely indicates the current uncertainty on whether the ETH price will pump. ETH’s negatively weighted sentiment further confirmed this uncertainty, at the time of writing. 

Negative weighted sentiment exposes long-term ETH holders to more losses 

Source: Santiment

According to the on-chain analytics platform, Santiment, ETH’s weighted sentiment, slid into negative territory after enjoying a recent positive elevation. It means the aggregated sentiment around ETH was bearish, and a slight price drop is a testament to this. 

Unfortunately, the negative weighted sentiment is weighing down long-term ETH holders. The 365-day MVRV has been negative for most of the year, translating to losses.

A bearish sentiment would extend the stay in the negative territory, exposing long-term ETH HODLers to more losses. 

A declining volume could deny bulls enough buying pressure

Source: Santiment

The fall in volume, as shown by Santiment, could also undermine strong buying pressure to push the altcoin king upwards. 

Therefore, investors need to be patient and check if buying pressure can build in the coming days. Also, tracking BTC movement could give a clear direction on ETH’s next move.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.