Ethereum (ETH) experienced a slight rise in selling pressure as most investors found themselves “in money” after hitting the $3.6k mark. The weekly price pump allowed a significant number of ETH addresses to be in profit, but a pullback was observed in the past 24 hours. The question on everyone’s mind now is whether this trend will continue or if ETH will reverse course and aim for $3,900 next.
Facing a correction, ETH recently touched its resistance at $3.6k, as reported by AMBCrypto. While there were hopes for ETH to turn this resistance into support and target $3.9k next, the current trading price stands at $3,577.87. Data from IntoTheBlock revealed that over 90% of ETH investors were in profit, which typically leads to profit-taking activities and increased selling pressure. Santiment’s data also showed an uptick in ETH’s supply on exchanges, indicating that investors were offloading their holdings. However, whales continued to show confidence in Ethereum, with the supply held by top addresses on the rise.
Analyzing whether ETH’s downtrend will continue, open interest in Ethereum surged sharply last week alongside its price increase. This suggests that the recent correction might be short-lived, with ETH potentially retesting its resistance levels. Moreover, the funding rate remained high, pointing towards dominant long positions and a bullish sentiment among traders.
Various metrics and indicators suggest a potential breakout above the $3.6k resistance for ETH, with a possible target of $3.9k in the near future. Technical indicators like the MA Cross indicated a bullish upper hand in the market, with ETH continuously testing its resistance. Additionally, the On Balance Volume (OBV) remained high, signaling a potential price jump above the resistance level.
If ETH manages to cross $3.6k, the road to $3.9k could be within reach. However, failure to do so might result in a fallback to the support near $3.3k. As evidenced by the indicators and metrics discussed above, the outlook for Ethereum in the coming days looks promising, with the potential for a bullish trend to continue.
