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Ethereum has shown potential with its recent bullish breakout; however, the significant waning of bullish momentum indicates a period of buyer exhaustion. Following the breakout, the market has entered a ranging phase.
Ethereum’s price action has revealed the exhaustion of buyers after reaching the hallmark level of 4,085.0. This exhaustion resulted in the formation of a bearish wedge, indicating weakness in the market.
Despite this, a successful bullish breakout has set the stage for a potential upward trend continuation. However, the effort required to achieve this breakout has left buyers fatigued, evident from the range forming at the price level of 3,726.0. This current phase of reaccumulation is expected to help the bulls regain the strength needed to propel the price above the current yearly high of 4,085.0.
Key Levels for Ethereum
Demand Levels: $3726.0, $3356.0
Supply Levels: $4085.0, $4100.0
Indicator Analysis
The Bull and Bear Strength indicator shows a decline in bullish momentum, as evidenced by the gradual reduction in the length of the histogram bars. Similarly, the Momentum Indicator has declined to zero, highlighting the current market weakness. Despite this, there is an expectation that the bulls will recover shortly and push through the current yearly high of 4,085.0.
Conclusion
In conclusion, while Ethereum has shown potential with its recent bullish breakout, the significant waning of bullish momentum indicates a period of buyer exhaustion. The current range at the price level of 3,726.0 suggests that the market is in a phase of reaccumulation. Traders should watch closely for signs of renewed bullish strength, as a successful recovery could see Ethereum surpass its current yearly high of 4,085.0.
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