Ethereum has faced significant challenges in recent weeks due to the bearish pressure in the crypto market. The ETH price has experienced multiple crashes, bringing it back down towards $2,000 and dashing hopes for a new all-time high in the third quarter. Despite this decline, there is hope on the horizon, as crypto analyst RLinda has suggested that Ethereum could be gearing up for a rally that may propel it back towards its previous highs.
RLinda’s analysis on the TradingView website reveals that the ETH price on the one-week chart is showing signs of bullishness despite the recent crash. The market has seen continuous accumulation from the low $2,000s level as the price begins to recover. This buyback from investors following the crash indicates a sense of bullish sentiment, even as the price has yet to fully rebound.
The analyst points out that there is a promising technical setup forming on the W1 chart, suggesting that Ethereum may be on the cusp of a significant move. RLinda believes that if the ETH price returns to its previous global sideways range, it could potentially surge towards the $4,000-$4,800 range. This positive outlook is supported by the background conditions in the market, which RLinda describes as bullish.
Key Levels to Watch
While the Ethereum price is showing signs of bullishness, there are still important levels to monitor on its path to recovery. RLinda emphasizes the significance of the $2,717-$2,817 resistance area as a key hurdle for Ethereum to overcome. Breaking through this resistance and forming support at this level could pave the way for a move towards $4,000.
In addition to the key resistance levels, RLinda also highlights important support levels that Ethereum must maintain to sustain its upward momentum. These levels include $2,518, $2,425, and $2,400. By establishing strong support levels at these points, Ethereum could be poised for a breakout towards higher price targets.
Whales’ Influence on the Market
RLinda suggests that the recent buyback of Ethereum by whales indicates that major players in the market are still bullish on the cryptocurrency. This activity, coupled with the price holding steady after a recent test and pullback, raises the likelihood of a breakout in the near future. Overall, the outlook for Ethereum remains positive, with potential for further gains in the coming weeks.
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