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- At the moment, Ethereum is consolidating above $3000. We stressed the necessity of going over the aforementioned range in terms of confirming a bullish surge a few weeks ago
- When there are too many investors participating at the same time, according to Ki-Young Ju, CEO of Cryptoquant, the price is likely to remain more volatile and enable a market explosion
- Ethereum should have had a slight fall to $2600-$2700 before stabilising over $3000, according to the structure. The issue is that since July 21st, the asset hasn’t established any higher lows
At the moment, Ethereum is consolidating above $3000. We stressed the necessity of going over the aforementioned range in terms of confirming a bullish surge a few weeks ago. In the last few weeks, Ethereum has done just that, but in a less than perfect manner. While the asset is currently trading over $3200, correction fears remain, despite the fact that it has been trading above its long-term barrier. Although the sub-head above may take some time to comprehend, here is the simpler storey. Market participation is currently nearing a point where the market may become overloaded.
When there are too many investors participating at the same time, according to Ki-Young Ju, CEO of Cryptoquant, the price is likely to remain more volatile and enable a market explosion. In such a situation, there are a few things that must be considered. Larger hands may be able to cause a price increase before quitting with profits, resulting in a market drop. Moving Transaction Counts away from the Standard Deviation causes an increase in volatility, which has a direct impact on the price. Now, data shows that transaction numbers are slightly over average, but the situation isn’t as dire as it was in May 2021.
Ethereum should have had a slight fall to $2600-$2700 before stabilising over $3000, according to the structure. The issue is that since July 21st, the asset hasn’t established any higher lows. From a strength standpoint, the climb has been linear, which is unhealthy. So far, Ethereum has been indicating a bullish stance above $3000, with no pullback in the last two weeks. As a result, it is currently totally balanced, and ETH trading above $3000 isn’t particularly bullish. Another possible hint of corrections is the fact that ETH’s position has come to a halt just under the designated Supply Zone.
On the 19th of May 2021, Ethereum collapsed between $3200 and $3400, indicating that there was intense selling pressure at that price range in the past. Ethereum’s market value is currently balanced, which is a simpler sub-head to understand. Either there will be a spike above $3400, or there will be a well-timed drop to $2700. Ether will be corrected in one way or another, but the time frame is yet unknown.