Ethereum’s price action has taken an interesting turn. The second-largest cryptocurrency trades below $2,700 after a significant setback from the Bybit hack. However, new data suggests a potential reversal ahead.
Market Impact of Recent Events
The Bybit hack resulted in a $1.4 billion ETH loss. This triggered immediate panic selling. The price dropped 7% on Friday, pushing ETH into lower demand zones. Yet, smart money might see this as a buying opportunity.
Technical Indicators Point to Recovery
CryptoQuant’s analysis reveals a compelling pattern. The taker buy-sell ratio shows a bullish divergence. This means buying pressure increases despite price declines. Historical data suggests such divergences often precede strong recoveries.
Key levels to watch:
- Current support: $2,600
- Immediate resistance: $2,800
- Next target: $3,000
On-Chain Analysis
The current market structure presents a unique opportunity. Institutional buyers appear to accumulate ETH at lower levels. This typically indicates strong hands entering the market. The divergence between price action and buying pressure often resolves upward.
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Market Outlook
Bulls need to reclaim $2,800 to confirm the reversal. A break above this level could trigger a cascade of buy orders. However, failure to hold $2,600 might lead to further downside.
The market shows signs of accumulation at current levels. Traders should watch for increased volume as confirmation of the bullish divergence. The next few days will likely determine the medium-term trend.
Tags: Ethereum, Technical Analysis, Market Analysis, Crypto Trading, Bullish Divergence
Source: Bitcoinist