Ethereum (ETH) shows signs of a potential bullish reversal despite recent market turbulence, with technical analysis pointing to a possible breakout toward $1,800. This analysis comes as ETH tests critical support levels around $1,580, setting up an intriguing technical pattern.
Technical Analysis: Supply Zones Signal Potential Reversal
According to renowned crypto analyst NotWojak, two critical supply zones at $1,425 and $1,600 are forming a potential springboard for ETH’s next move. The $1,425 zone has already been tested and mitigated, while the $1,600 level remains as the final hurdle before a possible breakout.
Key Price Levels to Watch
- Support Level: $1,350
- First Resistance: $1,600
- Target Price: $1,835 (20% upside potential)
On-Chain Metrics Paint Mixed Picture
Current on-chain data reveals:
- 32% of investors in profit
- 65% of holders at a loss
- 2% at breakeven
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Whale Activity Surges
Large transaction volumes have increased significantly:
- Transaction volume: $4.8B to $6.48B
- Average transaction size: $4,048 to $5,415
- Date range: Through April 9
FAQ
What’s driving Ethereum’s current price action?
A combination of technical factors and whale activity is influencing ETH’s price, with large transactions suggesting institutional movement.
When could the breakout occur?
Technical analysis suggests a potential breakout once the $1,600 resistance level is cleared, with momentum indicators showing oversold conditions.
What are the key risks to watch?
Continued whale selling pressure and broader market sentiment could impact the potential breakout scenario.
Current Price: $1,544 (Down 4.56% in 24 hours)