- ETH price retests the supply zone in the $2,927 – $3,151 range, following failure to surge.
- $3,675 seems to cap Ether’s upside on on-chain and technical viewpoints.
- Violating the barrier at $2,927 will annul the near-term bullish case for the altcoin.
Ethereum’s (ETH) price saw a slight surge as the altcoin bounced off a critical support zone. However, the bullish rally could not catch traction, translating to a massive drop towards the mentioned footing. Here, the leading alternative coin plans its next move as odds appear to support a bullish reaction.
ETH Price Lacks Strength
ETH price registered a 16% upswing from 10 January to 12 January, printing a swing peak near $3,413. The upward move left the day support area that extends between $2,927 and $3,151. Surprisingly, the zone also houses the weekly support floor at $3,061.
Inadequate momentum had Ethereum retracing lower to retest the support region. If sidelined buyers jump into this uptrend, Ethereum will have a higher probability of gaining 16% to hit the 48hr supply zones lower limit, extending between $3,765 and $3,862. However, the ETH price should overtake the 200-day MA at $3,480 to hit the mentioned support area.
If Ethereum’s buying momentum magnifies, the altcoin might overcome the obstacle and retest the weekly resistance close to the psychological barrier at $4,000. Such an upswing will mean a 28% surge.
Though the $4,000 target is optimistic, IntoTheBlock’s GIOM model seems not to support the case. Between $3,343 and $3,869, about 5.42 million addresses that bought nearly 21.41 million Ether tokens remain out of money.
An upward pressure may face selling momentum at this level as investors try to break even. That means ETH will require massive bullish momentum to overcome this zone.
The 30-day MVRV model highlights an upward move here would mean a near-term bounce. This metric determines investors’ loss or profits from ETH purchases within the last month.
For now, the index hovers at -10%, indicating near-term ETH investors are in losses and might sell. Meanwhile, the area is an opportunity region since long-term investors accumulate at the level, catalyzing a reversal.
Though the mild bullishness for Ethereum violating the $2,927 – $3,151 zone will form a lower low, canceling the bullish case. With that, ETH can lose 8%, hitting the $2,712 weekly support.
