Can Ethereum Price Escape $2,800 Cap As Altcoin Eyes?
Although Ethereum (ETH) is facing challenges, the price still has the potential to climb. Currently, ETH is trading at $2,411.
Recently, there have been concerns that ETH may enter a bear cycle. While this is possible, an on-chain analysis suggests how cryptocurrency can avoid capitulation.
Ethereum has strong support.
Market participants accumulated 52 million coins at an average price of $2,345, based on out-of-the-money price (IOMAP), a measure that divides addresses into profit, loss and split time.
This amount exceeds the amount purchased between $2,349 and $2,703. Typically, large volumes at certain price levels have a strong impact on price movements. If more volume is at a loss, ETH will face resistance as holders may sell to break even.
On the other hand, a large amount of profit indicates high support, because the holders are less likely to sell at a low price. Based on this, ETH has a high support around $2,345, which could push the price higher and reach $2,800.
Read more: How to buy Ethereum (ETH) with a credit card: Complete guide
Another reinforcement of this view is Ethereum's Chaikin Fund Flow (CMF), which measures the balance between storage and distribution.
When the CMF rises, it indicates that the accumulation is greater than the selling pressure. In contrast, a collapsed CMF shows a higher dispersion. On the daily chart, the CMF has moved into the positive territory, increasing buying pressure may allow Ethereum to recover from recent losses and push its price higher.
ETH Price Prediction: Demand will increase
On the daily time frame, Ethereum (ETH) has risen from $2,225 to $2,421, indicating a steady upward trend.
According to the chart below, the supply zone is around $2,700, which can be used as resistance. However, the $2,400 region serves as a strong interest zone for ETH, which increases the possibility of resistance of the altcoin from $2,581.
Additionally, the selling wall around $2,744 supports the potential for ETH to push higher. If ETH clears these barriers, the price could reach $2,800 and possibly $2,991.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
That is, traders should be careful of possible market volatility. If the broader market turns from bullish to bearish, this forecast may no longer hold. In that case, the price of ETH could drop to $2,114.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
