Ethereum Price Rebound: Analysts Predict Upside as Key Support Levels Hold
The Ethereum price has shown signs of recovery, rebounding from a fair value gap near $2,880 and currently trading above key support areas identified by technical and on-chain analysts. This development has sparked optimism among market watchers, who note that whale accumulation is increasing, retail exposure is decreasing, and high leverage can trigger strong moves. As a result, a break of the neckline in a bullish formation could lead to a significant uptrend.
According to technical analysts, Ethereum price has recovered after reaching $2,880, a level marked by previous price inefficiencies. The digital asset filled what traders call a fair value gap near this level and held above it, preventing any bearish gaps from appearing on the chart. Furthermore, the cryptocurrency has moved above key short-term zones again, with two support levels identified that coincide with key Fibonacci retracement zones and are viewed as potential accumulation areas.
Technical Analysis Points to Potential Uptrend
A longer-term pattern on the 3-day chart suggests a possible ascending inverse head and shoulders formation, analysts reported. The neck line has a slight slope and is just above the current price. If the neck line is broken, the estimated move based on the depth of the pattern implies a significant upside target, according to technical analysis. Other analysts are monitoring broader levels that have been tested multiple times over the past two years, noting that an intermediate level could act as support or resistance depending on market reaction.
On-chain data shows that Ethereum has recently reached levels consistent with the realized cost base for both retailers and large holders. Data shows that this area has served as a cycle low in the past. According to on-chain metrics, whale addresses holding large amounts increase their positions, while smaller wallets decrease their exposure. Liquidation data confirms the shift, with long positions no longer being liquidated on every decline while short positions are increasing.
Market Volatility Expected Ahead of US Jobs Data
The upcoming US jobs data has been identified as a potential trigger for volatility, particularly through its impact on Bitcoin. According to market observers, traders appear to be monitoring key levels and preparing for the next big move. As Ethereum enters a phase of liquidity accumulation, multiple indicators point to a gradual build-up of liquidity around key levels, potentially setting the stage for an uptrend continuation.
For more information on the Ethereum price and its potential upside, visit https://crypto.news/analysts-eye-upside-as-ethereum-price-tests-key-2-8k-levels/
