The V-top correction rally slumped the ETH price to the $3000 mark. This support level aligned with the 50 and 100 DMA line stalled the ongoing retracement, and decreasing volume activity teases a bullish reversal. The potential recovery would surge the altcoin back to the $3600 mark.
Key points:
- The rising OBV indicator slope bolsters price reversal
- A significant drop in the ADX slope highlights the lost bullish momentum during the correction rally
- The intraday trading volume in Ether is $8.91 Billion, indicating a 3.5% loss
Source- Tradingview
The Ethereum(ETH) recovery rally pivoted from the $3600 mark on April 5th. The sellers put immense pressure on coin price as Bitcoin witnessed a flash crash below the $45000 support.
The correction rally tumbled the ETH price by 16%, bringing it to a psychological support level of $3000. Amidst the uncertainty in the crypto market, the coin price has been hovering above this support for the past six days.
However, the decreasing volume activity during the pullback and a bullish breakout of the falling trendline bolster a reversal possibility. If this happens, the ETH price would breach the over ceiling of $3281 and rechallenge the $3600 mark.
On a contrary note, if sellers dumped the altcoin below the $3000 support, the extended correction phase would undermine the March recovery rally and drop the coin to $2750 support, followed by $2500.
The ETH price currently traders at $3065 mark with an intraday gain of 0.24%.
Technical Indicator
The OBV slope indicator shows a relatively larger pump than that of price action, suggesting the increasing underlying bullishness in the price.
The 50 and 100 DMA aligned with the $3000 mark mount a strong support region for buyers. Moreover, a bullish crossover among these DMAs brings additional buyers into the market.
- Resistance level: $3281 and $3600
- Support levels: $2750 and $2500
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.
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Source: https://coingape.com/markets/ethereum-price-prediction-volume-activity-hints-eth-price-to-rebound-from-3000/