Ethereum’s (ETH) price appeared to have bottomed out after sharp losses earlier this week, and is likely set for a bullish performance. Traders await a break above $3200 to confirm a strong bullish trend.
On-chain analysis indicates a strong upcoming rally as the ratio of on-chain transaction volume in profit and loss shows panic selling at the bottom.
Ethereum (ETH) Price Rebounds Strongly From Bottom
According to the on-chain analytics platform Santiment, the Ethereum (ETH) price has recovered strongly after bottoming out at $2960. The Ethereum on-chain transaction volume in profit/loss ratio data is in the bullish zone after three days of capitulation. Moreover, the price signals a strong upcoming upward trend as the price stabilizes above the $3100 level.
“Ethereum‘s market value is back above $3,100 after bottoming out at $2,960 to start the week. Our new ‘Ratio of On-Chain Tx. Volume in Profit/Loss’ ratio revealed that ETH traders were selling at the bottom, a solid sign of an upcoming bounce.”
Thus, the on-chain suggests a strong bullish trend above the $3100 level.
The Ethereum (ETH) price action also shows a rebound from the $2950 level. In addition, the price continues to move upwards in the ascending channel and holds above $3000. The next resistance level is at $3188, however, a confirmation above the $3200 level will bring a strong move in the upcoming days.
Furthermore, the retest of ascending triangle pattern confirms a bullish recovery as ETH forms a new support level at $3030, reported earlier. Thus, until Ethereum breaks the newly formed support level, a strong trend can be expected in the coming days.
ETH 2.0 Upgrade Pushed to Q3
Ethereum merge has been postponed to the third quarter of the year, delaying the much-awaited transition to proof-of-stake (PoS). Ethereum core developer Tim Beiko announced that the merge of Beacon Chain with the Ethereum mainnet will be scheduled after July this year. However, the reason behind the delay is not clear yet, as the team successfully tested the “shadow fork.”
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Source: https://coingape.com/ethereum-eth-price-set-for-strong-bullish-momentum-heres-why/