Although Ethereum temporarily recovered from the critical support area, bears continued their attacks. Second crypto market cap is back in an area that needs to be protected to stop further losses.
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Ethereum (ETH), which trades at $2840 as of the writing time, is experiencing a 3% drop in value over the 24-hours.
Market sentiment is trending towards the negative with Bitcoin, Ethereum, larger cryptocurrencies and more severe downside. But, experts are still hopeful for bulls as long as crypto markets can maintain their current levels.
A pseudonyms trader pointed at ETH’s price current structure and determined that it can trend upwards from its present price. The trader looked at Ethereum’s On Balance Volume (OBV) and said it is “still alive”.
As seen below, this metric has been moving sideways since the start of April despite ETH’s price action. The trader is in this sense. saidThe bullish bias will continue as long as OBV can sustain these levels.
The Ethereum price has seen higher highs than lows in 2022, and it seems that Ethereum will bounce back above $3,000 as shown by the chart. According to the pseudonym trader:
You may think I’m still being biased bullish but I can’t call this chart bearish yet. OBV is still holding support, but we have not made a lower low. If I break one of them, my bullish thesis will be canceled.
The long periods that Ethereum’s OBV has been consolidating have in the past led to significant rallies. The price of major cryptocurrencies trended downward in May and June 2017 before moving sideways to regain uncharted territory.
Do You Need to Sell Ethereum at Its Present Levels?
As many have pointed out on social media, the crypto market is growing in tandem to traditional equities. These assets react to major company earnings declines and the possible aggressive U.S. Federal Reserve monetary policy shift.
In 2022, the Nasdaq 100 index is showing weakness, which has been closely correlated to Ethereum and crypto markets. Crypto will not regain strength if this bearish trend continues.
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Current levels may serve as a bottom in the short-term for ETH/BTC prices. According to the pseudonym trader, the price action is currently at a low point and it has the potential to rebound upwards.
“Selling major support is one of the biggest mistakes traders make”. Take a look at what happened when people sold Bitcoin. If you are looking to sell, wait at least until support stops.
