Ethereum price recovers, support remains, upside potential possible according to analysts
Summary
- Ethereum’s price recovered after closing a Fair Value Gap of nearly $2,880 and is now above key support areas identified by technical and on-chain analysts.
- Market observers note that whale accumulation is increasing, retail exposure is decreasing, and high debt levels can lead to sharp moves; a neckline break in a bullish formation could provide significant upside potential.
- The upcoming US labor data could bring volatility as Ethereum enters a liquidity accumulation phase with potential for upside continuation.
Ethereum’s price has recovered after reaching $2,880, a level marked by previous price inefficiencies, according to technical analysts who track the cryptocurrency.
The digital assets filled what traders call a Fair Value Gap near that level and stayed above it, leaving no bearish gaps on the chart, according to market analysts. According to technical analysis, the cryptocurrency has moved back above the key short-term zones.
Two support levels have been identified that align with the key Fibonacci retracement zones and are seen as potential areas of accumulation, analysts said. According to market observers, these levels could provide long odds for traders seeking higher prices.
Ethereum (ETH) showed a small daily decline during the last trading session. According to technical charts, resistance zones are placed at several higher levels.
A longer-term pattern on the 3-day chart indicates a possible bullish inverse head and shoulders formation, analysts reported. The neckline has a slight upward slope and is just above the current price. If the neckline breaks, the estimated move based on the depth of the pattern, according to the technical analysis, implies a substantial upside target.
Other analysts monitor broader levels that have been tested multiple times over the past two years. In the shorter term, a mid-level could act as support or resistance depending on market reaction, market observers said. The current price action, combined with high leverage, leaves the market exposed to sharp moves, analysts noted.
Ethereum may have bottomed at $2.8k
On-chain data shows that Ethereum has recently reached a level that matches its realized cost base for both retailers and large holders, according to blockchain analytics. Records show that this area has served as a cycle low in the past. According to on-chain statistics, whale addresses reportedly increase holdings, while smaller wallets reduce exposure. Liquidation data confirms the shift: long positions are no longer liquidated on every dip, while short positions are increasing, derivatives data shows.
Another analyst noted that Ethereum closed its recent daily candle with a long downside wick, a signal that buyers may have entered late in the session. The focus now is on relative strength against Bitcoin and short-term moves around a nearby resistance zone, the analyst said. Holding above this zone would promote continuation, while not holding it could lead to sideways price action, the technical analysis shows.
The upcoming US labor data was identified as a potential trigger for volatility, especially due to its effect on Bitcoin, analysts said. According to market observers, traders appear to be keeping an eye on key levels and preparing for the next big move.
Ethereum appears to be entering a bottom phase, with multiple indicators pointing to a gradual build-up of liquidity around key levels, according to technical and on-chain analysis.
