Ethereum Pulls Back to Violated Demand Zone

 

Ethereum’s recent price action presents an intriguing scenario as it returns to a previously violated demand zone. The price level at $2,814.0 has played a pivotal role in Ethereum’s recent market behavior. This zone provided support multiple times in May and July, evident on the 24-hour timeframe. However, this demand level was decisively broken on August 4th, following an aggressive and rapid price crash. The drop extended to the next demand level at $2,195.0, where buyers quickly re-entered the market, sparking a notable price rebound. This bounce confirms that the demand zone remains significant for Ethereum’s price structure.

Currently, Ethereum is trading around its previous support level, which is now acting as resistance. Typically, once a support level is broken, it can reverse its role and act as resistance, creating challenges for bullish momentum. As Ethereum revisits this level, the market is at a critical juncture, as traders and investors closely monitor how the price reacts at this resistance.

Key Levels for Ethereum

• Demand Levels: $2,195.0, $1,995.0, $1,785.0
• Supply Levels: $2,814.0, $3,086.0, $3,541.0

Indicator Insights

Technical indicators suggest further insights into Ethereum’s potential price direction. The Stochastic indicator signalled an oversold condition when the price dipped to $2,195.0, triggering the subsequent bullish rebound.  The current price movement, driven by renewed buying pressure, has already pushed above the Smoothed Heikin Ashi candles, a signal that the bullish momentum may continue in the short term.

However, for Ethereum to solidify its bullish trajectory, it must overcome key resistance levels. A sustained move above the $3,400.0 mark would confirm a bullish trend, potentially setting the stage for further upside.

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