Ethereum Bounces Off Demand Zone

Ethereum recently broke below the key demand zone at $2809.0, triggering a sharp decline to the lower demand zone of $2116.0. This price crash represents a significant loss of over 80% from the year’s peak, with the decline slightly dipping below the open price for the year. The severity of this pullback highlights the market’s bearish sentiment, though the current price action suggests a potential reversal.

After initially bouncing off $2116.0, Ethereum attempted to recover, testing the previous demand zone, which has now turned into resistance. This test failed, leading to a second drop back to $2116.0. However, a bullish shift in market structure followed after this second test, resulting in a strong ascent. Breaking the resistance zone at $2809.0 could present a significant challenge as the price will first need to move past the inefficiency region around $2646.0. below the last demand zone.

 

Ethereum Key Levels

• Demand Levels: $2116.0, $1755.0, $1162.0
• Supply Levels: $2809.0, $3547.0, $4000.0

 

What Are the Indicators Saying?

The Stochastic indicator showed oversold conditions at both tests of the $2116.0 demand zone. Ethereum has now risen above the 9-period Moving Average, signaling an upward move toward the resistance zone at $2809.0. A break above this resistance could place Ethereum back on a bullish trajectory.

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