Analysts suggest Ethereum will rebound following correction to $2,960

Ethereum (ETH) could be gearing up for a rebound after hitting a previous target low set at $2,960 price, according to Tara, a prominent crypto market analyst.

Ethereum ETH has been one of the victims of the ongoing market correction, falling 23% from a high of $3,726 on April 9th ​​to a two-month low of $2,850 on April 13th. Despite a gradual rebound from this low, ETH is still in bearish territory, showing the following trends: Volatile price movements in the fight to regain $3,000.

In his analysis, Tara called for caution with these price movements and suggested that bearish pressure could continue and ultimately lead to a decline to $2,700, roughly in line with the key retracement level. This bearish boost was expected to materialize as a result of the ongoing correction.

ETH emission correction

However, Tara acknowledged in his latest report that this correction may already be over amid shifts in overall market sentiment. For context, Bitcoin (BTC) It recently reached today's correction target of $59,700 and posted a bullish push above $63,000 with an impressive post-retest rally.

#Ethereum update!so i believe #ETH In fact, the fix is ​​currently being completed. I reached 1:1 of W1 on 2960, but now #BTC I have already achieved my goal, but I think this is the only time I can earn ETH. More details in his Casi video update posted later today!… https://t.co/dzcLevpsC4 pic.twitter.com/qWzieBmKAV

— TARA (@PrecisionTrade3) April 18, 2024

Ethereum took advantage of this uptrend and recorded a closing green candle on the 1-hour chart from 07:00 (UTC) today. This momentum reversal occurred at the same time as ETH retested the $2,960 low, followed by Bitcoin retested $59,700.

According to Tara, the $2,960 threshold represents a strong retracement level. In particular, such support zones are typically exploited to propel you towards recovery. The same goes for Ethereum, which has risen 4.71% in the past seven hours after touching $2,960.

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As a result of this bullish switch, ETH once again broke above $3,000 and attempted to establish solid support above this psychological level. However, as highlighted by Tara last time, Ethereum is facing stiff resistance at the Fibonacci 0.382 level at $3,115. analysis.

Ethereum is expected to maintain its bullish momentum

If the bears regain control, Ethereum will need to sustain above $2,996 to prevent a plunge to recent lows. This level coincides with the support attached to the recently formed upper trend line of the symmetrical triangle on the 1-hour time frame.

but, Ethereum hourly RSI It continues to rise after the collapse from the price drop to $2,960. The RSI is currently showing bullish momentum in the short term, but Ethereum needs to break above the 50-day EMA at $3,164 for this bullishness to be confirmed. This also syncs with Fib. 0.382 level at $3,115.

At this pivotal moment, CryptoQuant data We observed a decrease in open interest, suggesting that Ethereum may be on the verge of a bearish-to-bullish trend reversal. Additionally, the funding rate indicates that long sentiment is predominant, indicating investor behavior at this time.

Additionally, the Coinbase Premium Index has recently recorded a modest increase, indicating growing demand for Ethereum among US institutional investors. ETH is currently trading at $3,083, up 3.15% today on the recovery.