The second-largest cryptocurrency recently soared to its highest level since early February, sparking hopes among bulls that a further uptrend could be on the way.
However, global geopolitical tensions, the overall bearish market conditions, and other factors suppressed the price, and now the question is whether a deeper correction is coming next.
What Now?
Approximately a week ago, $ETH surged to roughly $2,465 but is currently trading around $2,300. X user Ted noted that the asset tried to reclaim the $2,400 mark but failed, setting $2,250 as the next key support.
Other analysts who touched upon the cryptocurrency’s recent performance include CRYPTOWZRD and Crypto Tony. The former claimed that breaking above the $2,380 resistance and holding there could open the door to a more substantial upside, whereas the latter paid special attention to another important zone:
“A reclaim of $2360 and we can talk a leg up and a safer long entry, but not for now.”
Meanwhile, some prominent industry figures remain convinced that $ETH is about to reach somewhat ridiculous (at least for now) peaks. An evident example is Tom Lee (CIO of Fundstrat Capital), who recently envisioned a parabolic rise to $250,000.
It is important to note that he is Chaiman ot Bitmine Immersion Technologies – a company heavily invested in $ETH. Not long ago, the entity purchased 101,627 coins, bringing its total stash to almost 5 million tokens, or about 4.12% of Ethereum’s circulating supply.
The On-Chain Signals
According to some technical indicators, $ETH may be on the verge of another resurgence. The Relative Strength Index (RSI), for instance, has dropped below 30, meaning that the asset has entered oversold territory and could be due for a rally.
The technical analysis tool is often used by traders to spot potential trend reversals. It runs from 0 to 100, where anything above 70 is considered a warning for impending correction.
Next on the list is the declining amount of $ETH stored on exchanges. Data from CryptoQuant show that the figure recently fell to a nearly 10-year low of approximately 14.5 million. The trend reflects strong investor conviction and reduces immediate selling pressure.
