It has been a tumultuous past few days for Ethereum and the crypto market.
Nonetheless, there are some bright lights for Ethereum judging from the candlestick arrangement in the daily chart. ETH prices are steady above the $2.4k level, much to the relief of holders who have had to endure rapid value erosion for the past two to three months.
Technically, sellers are still in control. However, in the immediate term, the rejection of lower lows and the influx of buyers could see prices recover, building on the development of early this week.
Are Ethereum Bears Exhausted?
On Monday, CNBC’s Jim Cramer, the host of the popular show “Mad Money“, agreed with analyst Tom DeMark that bears are exhausted.
In their preview, ETH—and Bitcoin prices—could soon snap back to the primary trend to edge higher, easing the intense selling pressure experienced in the better part of Q4 2021.
For how the ETHUSDT prices are laid out, traders could be too late to liquidate at spot rates. Instead, they could buy the dips, especially if there is a final leg down towards the $2k—or even towards $1.8k—a critical support level.
“When the charts, as interpreted by Tom DeMark, say that both Bitcoin and Ethereum could be looking at downside trend exhaustion bottoms this week, if not today, I think you need to take him seriously. To me, that says it might be too late to sell, and you need to consider buying. I know I am, especially if we get a final leg down.”
Ethereum Price Analysis
The Ethereum price is bearish, but there are hints of revival reading from the ETHUSDT candlestick arrangement in the daily chart.
In the medium term, sellers appear to be in the driving seat. However, the rejection of lower prices from early this week may point to ETH bear exhaustion and possibly the end of the worrying bear run.
Notably, ETH prices have support at the 78.6 percent Fibonacci retracement level of the H2 2021 trade range.
Based on this formation, aggressive ETH traders may fade the primary bear trend, ramping up on dips while targeting $3k. Meanwhile, unexpected price dumps below this week’s lows at around $2.1k would nullify the bullish outlook, continuing the bear trend of last week.