Since the beginning of this year, Ethereum has been performing poorly compared to the market’s major digital assets. Decreased performance of ETH It raises concerns within the community, and traders find it difficult to tell whether Altcoin is preparing for a massive gathering or adjusting for further downside pressure. However, current price actions indicate that ETH may be set to price rebound in the short term.
Chart Patterns suggest Ethereum recovery
In a post on X (formerly Twitter), veteran technical expert and trader Ali Martinez Highlighted The bullish development of the Ethereum chart. Experts have pointed to the formation of key chart patterns, which could rekindle the momentum of the rise and push ETH towards key resistance levels.
I’ll dig deeper EthereumThe recent price action has featured parallel channel patterns over a one-day time frame. Specifically, parallel channels are technical chart patterns created by connecting high and low values on two parallel trend lines. This chart formation helps investors and traders determine potential entries and exit points for cryptocurrency prices.
Now Ali Martinez pointed it out. altcoin Testing the lower bounds of key patterns. Here, it may be possible to ensure sufficient strength to migrate on the contrary. If the pattern causes bounces to regain the $2,350 level, it promotes a strong recovery to $3,000 and $4,000.
When an asset tests the lower bound of the pattern, it is ETH is at an important junction We are preparing for the next move. As ETH approaches major resistance levels, bullish momentum continues to increase, increasing the chances of rebounding due to important breakouts.
Investors reduce exposure to ETH
Amid a bearish movement, on-chain data shows a decline in investors’ ETH exposure. recently Report From on-chain data and financial platforms, GlassNode reveals that Ethereum investors are actively managing their exposure during this disrupted period.
Ethereum It surged to around $2,500 before retreating to the $2,050 areaat the level last seen in November 2023, perhaps contributing to the current change in investor behavior. Looking at GlassNode’s chart in a three-month view, there is robust engagement from investors on an initial cost basis of $3,500.
Data shows that these holders eagerly reduced their exposure during February as they intervened at $2,500 at the top of the locals and $2,050 at the bottom. Additionally, these holders reduced the initial Cost-based At about 10%, it currently holds more than 1.75 million ETH at $3,200.
This trend continues, even as Ethereum prices drop. On March 1, GlassNode noted that 500,000 ETH was purchased for $2,200, but was quickly redistributed at the local top of $2,500.
Meanwhile, the $2,800 mark was the first major barrier to resistance, 800,000 ETH is accumulated. GlassNode expresses its immense importance to this level at this level. This is because there is a high chance that a price recovery will occur in this region.
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