Ethereum (ETH) recently experienced a 13% price correction, but indicators show potential for recovery as it secures a crucial bear market support level. This development aligns with gradually improving market sentiment, although certain challenges persist.
There has been a noticeable increase in realized losses for Ethereum, often signaling investors’ untimely selling during downturns. Many are now opting to hold onto their investments, in hope of selling at higher prices later, suggesting a shift in investor strategy that may stabilize Ethereum’s market.
The reduction in selling pressure from these "HODL" investors could contribute to Ethereum’s recovery, as long-term holders wait for a more favorable market. Additionally, the net position change on exchanges shows declining ETH inflows, further reducing selling pressure and reflecting positive sentiment. This optimism could allow Ethereum some time to recuperate.
The current trading price of Ethereum is around $2,428, with support from the 23.6% Fibonacci Retracement line at $2,401. These market factors suggest Ethereum might surpass the $2,591 resistance, coinciding with the 38.2% Fibonacci line, encouraging further upward movement.
Successful breaches could propel Ethereum's value beyond $2,600. However, failure to break the $2,591 barrier might result in a trading range between $2,401 and $2,591, potentially hindering immediate bullish progress.
