The crypto market has been experiencing a significant correction, and Ethereum (ETH) has not been left out. Following a 23% decline, Ethereum slipped off its $3,726 high on April 9 and hit a two-month low of $2,850 on April 13.
Amid this downturn, Tara, a well-known crypto analyst, recently predicted that Ethereum might be gearing up for a recovery after hitting a low of $2,960.
Predicted Continuation of Bearish Pressure
Despite a minor rebound from a $2,960 low, Ethereum remains in an overall bearish trend. The asset has been exhibiting unpredictable price movements as it attempts to reclaim the $3,000 level.
In her analysis, Tara pointed out Ethereum’s recent price actions, indicating that the bearish pressure might continue. This could lead to a decline to the $2,700 price level, which is close to a crucial retracement point.
#Ethereum UPDATE! SO, I believe #ETH is actually done with it’s correction now too. It did hit the 1:1 of W1 at 2960 and now that #BTC has already hit target, I believe this is all ETH is going to get. I explain more in my video update with Casi that will be posted later today!… https://t.co/dzcLevpsC4 pic.twitter.com/qWzieBmKAV
— TARA (@PrecisionTrade3) April 18, 2024
This bearish push was expected to occur as part of the crypto market’s ongoing correction. However, in his updated outlook, Tara indicated that this correction might have already concluded, given the shift in broader market sentiment.
Earlier today, Bitcoin reached its correction target of $59,700 and is experiencing a bullish surge above $64,000. Ethereum is following the same upward trajectory, recording a 2% increase in the last 24 hours.
This bullish reversal preceded Ethereum’s retest of the $2,960 low, which coincides with Bitcoin’s recent retest of the $59,700 price level.
The correlation between Bitcoin and Ethereum is not uncommon in the crypto market. Often, Bitcoin’s performance influences the performance of other cryptocurrencies, including Ethereum.
Ethereum’s Bullish Momentum and Future Prospects
According to Tara, the $2,960 level represented a strong retracement level. Such support zones are typically used as a springboard for recovery, and this was indeed the case for Ethereum.
Ethereum has rallied 4.71% over the last seven hours since touching $2,960, breaking above the $3,000 mark again. It now aims to establish a firm support level above this psychological threshold.
However, as previously highlighted by Tara, Ethereum faces significant resistance at the Fibonacci 0.382 level, situated at $3,115. If the bears regain control, Ethereum would need to maintain its position above $2,996 to prevent any sharper drops to the recent lows.
Ethereum’s hourly RSI has continued to rise following the drop to $2,960, indicating bullish momentum in the short term. However, the crypto would need to break through the 50-day EMA at $3,164 to confirm this price rally. This coincides with the Fib. 0.382 level at $3,115.
CryptoQuant data shows a decrease in Open Interest, suggesting that Ethereum might be on trend reversal from bearish to bullish. The funding rate indicates that long sentiment outweighs shorts, reflecting investors’ bullish behavior.
Ethereum is currently trading at $3100, down 12% in the last seven days. The upcoming days and weeks will be crucial for Ethereum as it navigates through this period of market volatility.
The cryptocurrency’s ability to maintain its bullish momentum and break through key resistance levels will be instrumental in determining its future price trajectory.
