- Despite a bullish channel breakout in the weekly chart, the ETH price struggles to surpass the $2500 mark.
- The overhead supply warns of a retest amidst a market slowdown that may cause a quick fall to $2000.
- In case of a successful post-retest reversal, the $2500 breakout rally can challenge the supply present at $3000.
With a bullish prevailing trend, the ETH price has shown a remarkable recovery over the past few months. However, with the recent shift in market sentiments months before the Bitcoin Halving events, the sellers are ready to shine brighter.
The double top possibility, the overhead supply, the market sentiments, and much more tease a pullback phase in Ethereum. Nevertheless, our ETH price prediction expects a recovery rally in the coming months of 2024.
Channel Breakout lacks Momentum for a Bull Run
Source – TradingView
With a clear uptrend in motion in the weekly chart, the ETH price sustains a bull run from late 2022 to early 2024. Crossing the $2000 barrier and testing the heights of $2500 after the bear market of 2021 & 2022, the trend reversal signs are shining brighter than ever.
Moreover, the increasing momentum and the overall increase in trading volume support a bull run possibility in 2024. Even the channel’s overhead resistance breakout signals a potential bull run.
However, a small pitstop is waiting at the $2500 barrier. The immense overhead supply and the dip in trading volume warn of a retest.
Source: TradingView
In the daily chart, the buyers dominate the field with a rising channel. However, the double top in at the overhead trendline warns of a retest of the $2400 breakout.
Currently, the ETH price trades at $2469 and resists a pullback following the 2.39% drop last night, accounting for $28 million in long liquidations.
Hence, the buyers can find the $2400 retest as an entry point with the buy low sell high strategy. On the flip side, a drop under $2400 support zone can result in a price fall to the psychological mark of $2000.
Technical indicators:
RSI indicator: The weekly RSI line maintains a positive trend to approach the overbought boundary line. However, a bearish divergence arises in the past two peaks and warns of a short pullback for trend correction.
Only 20% HODLers Are Losing Money At Current ETH Price
As per into the block, most of the Ethereum holders are making profits, 77.39% of addresses to be precise. However, on the flip side, 20.51% of the addresses are still out of the money, meaning they bought at a price greater than the current ETH price.
Meanwhile, just 2.09% of HODLers are at the money.
