A few hours to the time of writing, Ethereum flipped the $3,200 support. The retracement was halted at $3,177. During this period, more than $50 million was REKT as price failed to perform as expected.
These corrections have resulted in fears of a dip to below $3k. Will that happen? Let’s consider two factors.
Ethereum Previous Records
Last month ended with the second largest cryptocurrency by market gaining more than 12%. Opening at $2,922, the coin dipped to a low of $2,445 and hit a high of $3,483. The low was seen at the start of the previous 30-day period.
The same price movement seems to be playing out during this session. Currently, it’s down by more than 8% over the last three days, we may expect a flip in trajectory as in coming days. To back up this claim, we turn to previous price performance during April.
We observed that since its introduction to the market in 2015, ethereum has experienced seven of the highlighted timeframes. During this period, the biggest loss it had suffered was 22% and the highest had gained was 69%.
On average, ETH gains 32.2% every April, hence, it is considered the third most profitable month of the year. Going by the average, we may conclude that the coin will recover from the current price correction.
Additionally, based on the average, we may expect a 10%-30% increase within the next 23 days.
Market Sentiment
For most of March, traders remained in fear due to the market’s uncertainty. Following the rallies, ether was seen crushing a number of records. For example, it was reported that Ethereum, gained a market capitalization higher than that of Bank of America.
Although there were no reports of large purchases of the asset, as market conditions improved, the Ethereum Fear and Greed Index gradually left the previous region and is currently neutral as recent readings place it at 58.
In Coming Days
With the assurance of ether flipping bullish, how low will it dip before rebound? To answer this question, we will rely on the charts. Currently trading above $3,200, further retracement may see ETH test the $3,100 support.
A flip of this critical level could result in a dip below $3k as the mark has not been rigorously defended by the bulls. Once, $3,000 fails, there are no tough supports until $2,800. We may bank on this level as previous price movements suggest that there’s been an increase in demand concentration.
Speaking of how high the coin will rise this April, the $3,600 resistance has not been tested for the past three months. We may expect a retest of this key level over the next 23 days. A flip of this mark will result in an attempt at the $3,900 resistance.
Indicators and also printing bullish signals. For example, the Moving Average Convergence Divergence (MACD) showed that the largest alt just experienced a bullish divergence on the divergence on the weekly chart.
Additionally, on the daily chart, we observed that the asset is currently above it pivot point which is good news for ETH as it is an indication of an impending uptrend.
