This Ethereum Price Buying Opportunity Could Propel ETH to $3,500 

Ethereum (ETH) price has shed 14% in the past five days and trades today at $2,346. This downtrend has knocked ETH down to a key support zone that could trigger a reversal. Investors can expect decent risk-to-reward. In this article, CoinGape explores potential buying opportunities for Ethereum and a potential rally that could breach $3,000 and revisit $3,500. 

Ethereum Price Presents Buying Opportunity

From a technical standpoint, the 14% crash has pushed ETH price deep into the $2,440 to $2,252 demand zone, which is the current support structure. If ETH manages to produce a daily candlestick close above the demand zone’s midpoint of $2,340, it would denote a significant absorption of selling pressure into limit buy orders.

Investors looking to open swing long positions or accumulate ETH ahead of the bullish fourth quarter can do so at the aforementioned levels. 

However, this buy signal is not enough for ETH price to achieve the goal. Bitcoin (BTC) needs to halt its correction and stabilize around $61K to $62K levels. Such a development could see Ether and other top altcoins shoot higher.

A bounce from the aforementioned demand zone is not an easy task for bulls due to the following hurdles.

1. The $2,309 to $2,820 range’s midpoint $2,564 is the first hurdle Ethereum price will face.
2. Overcoming the said barrier will put ETH in front of the $2,886 to $2,923 resistance levels. 
3. Beyond this lies the $3,000 psychological level and $3,500, both of which are easy to achieve if ETH can conquer $2,800.

ETH Price Interests Investors:  On-chain Data Hints

Supporting this Ethereum buy signal is the recent uptick in ETH Network Growth since September 21. This metric tracks new addresses joining the Ethereum blockchain. In tandem with the network growth, the daily active addresses have nearly doubled from 350K to 520K in the past two weeks.

Combined, these two on-chain metrics signal that there is a capital inflow and interest from sidelined buyers at the current price levels.

If Ethereum price fails to hold above the demand zone’s lower limit of $2,252, it will signal that the selling pressure is greater than the limit buy orders and could knock ETH down to the next key level of $2,000. 

Popular crypto trader and analyst Crypto Capo mentioned that he is expecting Bitcoin to drop 10% to 20%, which could also knock ETH lower. In such a case, the Ethereum price forecast target would be $2,000. 

✓ Share:

Akash Girimath

Akash Girimath, an engineer by training, has developed a deep fascination with the complexities of cryptocurrency markets. As a senior reporter and analyst, he specializes in crypto analysis and contributes his expertise to notable platforms such as AMBCrypto and FXStreet. In addition to his analytical work, Akash actively trades cryptocurrencies and manages a small crypto fund for friends and family. His role involves providing insightful market analysis and keeping readers informed about the latest trends in the crypto world. Follow Him on Youtube , X and LInkedIn

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.