Although Ethereum (ETH) bulls previously succeeded in lifting the altcoin price above $2,700, they now face a significant challenge. Their current objective is to keep ETH from falling below the critical support level of $2,400.
This analysis by BeInCrypto explores whether the cryptocurrency will dip below this range or if the bulls will manage to maintain it.
Ethereum Experiences Increased Capital Inflow
As of October 19, the Chaikin Money Flow (CMF) indicator on Ethereum’s daily chart fell to -0.10. Commonly referred to by its acronym, the CMF tracks the rate of capital moving in and out of a cryptocurrency.
A rising CMF suggests that more money is entering the cryptocurrency market, potentially leading to a significant price rise if this trend continues. Conversely, a negative CMF indicates that money is exiting, suggesting holders are selling off.
At the time of writing, the CMF has moved back into positive territory, signaling that Ethereum bulls are currently accumulating coins. If this trend holds, it could avert another steep price decline similar to what occurred a few months ago.
Read More: How to Purchase Ethereum (ETH) and Everything You Need to Know
Another important metric, the Weighted Sentiment, suggests a potential rebound in ETH’s price. This metric gauges the overall sentiment market participants have about a cryptocurrency. An increase indicates a bullish sentiment, which can lead to heightened demand.
On the other hand, a decline in this metric signifies that market participants are hesitant about purchasing the cryptocurrency, making price increases more difficult.
As reported by Santiment, Ethereum’s Weighted Sentiment has climbed back above the neutral line, indicating a shift towards positive sentiment and hinting at increased demand for ETH.
ETH Price Outlook: Anticipating a Rebound After a Dip
Currently, the price of Ethereum is approximately $2,556. On the daily chart, ETH has established an inverse head-and-shoulders pattern, which is a technical indication of a shift from bearish to bullish momentum.
Despite the recent price drop, this pattern implies that a reversal to an upward trend may be imminent. If validated, Ethereum bulls are likely to defend the $2,457 area.
Read More: Ethereum (ETH) Price Forecast for 2024/2025/2030
If this pattern is confirmed, the altcoin could rise towards $2,839. In an extremely bullish scenario, it might even reach as high as $3,010. However, if the bulls fail to sustain the support level, this prediction could fall through, leading ETH to drop to $2,116.
Disclaimer
This price analysis article is intended for informational purposes only and should not be seen as financial or investment advice, in accordance with the Trust Project guidelines. BeInCrypto strives to provide precise and impartial reporting; however, market conditions can change unexpectedly. Conduct thorough research and seek professional advice before making any financial decisions. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been revised.
