Ethereum (ETH) Analysis: Is a Price Correction Imminent?
Ethereum (ETH) Analysis: Is a Price Correction Imminent?
Ethereum (ETH) analysis indicates that the recent price rally faces potential challenges. After a notable 10% rise in the past week, Ethereum's price is hovering around $2,552, but signs of selling pressure are emerging.
Sell Signals Emerge
The Price Daily Active Addresses (DAA) Divergence indicator has started to flash sell signals, suggesting that Ethereum's price rally may soon face a pullback. This divergence reflects declining participation amidst rising prices, which historically indicates a lack of investor confidence.
- Investors' Confidence Dwindling: A shrinking number of active addresses points to waning market interest.
- Recent Sell Activity: Nearly $40 million in ETH was sold in the last two days, marking the first significant selling pressure in three weeks.
- Potential Price Correction Likely: If ETH falls below the critical support level of $2,546, it could slide further towards $2,344.
Price Predictions and Future Outlook
If Ethereum can overcome the selling pressure and break through the $2,681 resistance level, a bullish trend toward $3,000 remains possible. However, analysts maintain that current patterns suggest an imminent correction.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.