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ETH Price Analysis: Can Ethereum Bulls Keep Prices Above $2000?

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·3 min read
In this article:
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Key Insights:

  • ETH’s price has found strong support at the $1,920 mark,

  • The high BTC correlation has provided the necessary push to the top altcoin’s trajectory.

  • If ETH bulls can push the token above the $2000 mark in the near term, recovery could be expected.

The bearish winter in the crypto market spared no cryptocurrency. Ethereum, the top altcoin by market cap, was down by almost 60% from its all-time high price of $4,847.57 made in November last year.

As the king altcoin continues to suffer in the crypto winter, there’s still hope for ETH HOLDers, at least in the long term.

Less Vibrant Network

ETH’s price slipped below the $2000 mark on May 18 following aggressive sell-offs from traders in the spot market. The $2000 mark has acted as solid psychological support for the coin.

Data from analytics website Glassnode highlighted that in tandem with the price fall, the number of addresses in loss reached an ATH of 34,966,535, further highlighting how the ETH network suffered a loss at large.

Additionally, on May 27, when ETH’s price oscillated close to the lower price range of $1707, the percentage of addresses profiting from their ETH positions dropped to the lowest point since July 2020. With addresses in profit at a 22-month low, 53% of the addresses were holding ETH are In the Money at that time.

Apart from price, the number of active addresses (7d MA) was at a 10-month low of 29,495.667. The lower number of active addresses was indicative of a much less vibrant network.

ETH Price Bottom Made?

On a daily chart, ETH’s price made higher highs over the last three days. If ETH’s price closes in green again, the same will mark an extended four-day period of green candlesticks for the token.

On a weekly chart, ETH’s price has been falling since it made an all-time high on Nov 10. The downward momentum pulled ETH’s price to a low of $1,700 on May 27. The fall in price was accompanied by a bearish divergence in the relative strength index (RSI).

Interestingly, the last time ETH’s weekly RSI reached a low of 33 was when the price made the 2016 bottom. After that, weekly RSI noted such low recordings during December 2018, when it reached a low of 28.

Thus, with weekly RSI noting extremely low values, many in the market expect a recovery. Generally, such RSI readings are associated with price bottoms; however, a swing in either direction could be expected with the market volatility much higher.

Bulls Optimistic of Ethereum Recovery

While ETH’s price still traded below the crucial $2000 mark, the $1920 mark has acted as a strong support for ETH’s price. That said, some other positive signs reinforced investors’ confidence in the top altcoin.

Until May end, the number of staking ETH 2.0 deposit contract addresses reached 12,711,363, while the staking rate has reached 10.72%. This meant that over 10.72% of the ETH currently in circulation is deposited in ETH2.

Furthermore, Ethereum network fees remained the cheapest they have been in over ten months, with the average ETH transfer fee sliding to a low of $2.96 per transaction.

These positive developments could aid ETH’s uptrend in the near future. In fact, at the time of writing, ETH traded at $1,928.82, noting 7.53% daily gains. However, the coin was still down by close to 3.29% on the weekly chart.

While ETH’s price still struggled to find footing above the $2000 mark, analysts believed that the recent ETH uptrend was a bullish divergence.

Nonetheless, for now, whether ETH’s price notes another uptick or breaks down below is something that would largely depend on macro market conditions and BTC’s price action.

This article was originally posted on FX Empire

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