Ethereum (ETH) bulls have a big challenge ahead of them, despite helping the altcoin rise above $2,700. The new task this time is to prevent ETH from falling below the critical support level of $2,400.
In this analysis, BeInCrypto checks whether the cryptocurrency will fall below the zone or whether the bulls will successfully defend it.
Ethereum sees increased capital injection.
On October 19, Chaikin Money Flow on the Ethereum daily chart fell to -0.10. CMF, popularly called its short form, measures the rate of capital flow into and out of a cryptocurrency.
As CMF rises, more funds flow into the relevant cryptocurrency. If sustained, this could lead to notable price increases. On the other hand, a negative CMF indicates that funds are flowing out and being distributed by holders.
At press time, CMF numbers were back in positive territory. This rise indicates that Ethereum bulls are accumulating coins. If this continues, it could prevent another price crash like the one experienced a few months ago.
Read more: How to Buy Ethereum (ETH) and Everything You Need to Know
Weighted Sentiment is another indicator that suggests the ETH price may rebound. This indicator measures the perception that market participants have about cryptocurrencies. If it increases, broader sentiment is optimistic and could lead to increased demand.
Conversely, a decline means market participants are cautious about purchasing cryptocurrencies. In this scenario, it becomes difficult for prices to rise.
According to Santiment, Ethereum’s Weighted Sentiment has rebounded from the neutral line to positive sentiment, suggesting that the price of ETH could see an increase in demand.
ETH Price Prediction: After a decline comes a rebound
The current Ethereum price is around $2,556. On the daily chart, ETH formed an inverted head and shoulders pattern, a bearish to bullish technical pattern.
Despite the decline in Ethereum price, this pattern suggests that the trend will soon reverse to the upside. In this case, Ethereum bulls are likely to defend the $2,457 area.
Read more: Ethereum (ETH) price prediction for 2024/2025/2030
If verified, the altcoin could rise to $2,839. In a very optimistic situation, it could rise to $3,010. However, these predictions may become invalid if the bulls fail to defend base support. In this scenario, ETH could fall to $2,116.
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